Work to repair and stabilise the famous Cobb harbour wall in Lyme Regis is set to cost £1.5million more than expected due to inflation and the rising cost of materials.
The wall has suffered 'significant destabilisation' over recent years, according to Dorset Council, as a result of sea floor erosion.
The original repair scheme was budgeted for £3million, most of which had come from the Environment Agency - but the council says that has now risen to £4.5million.
A spokesperson said: "Due to inflation and the rising costs of construction works, the budget is no longer sufficient to carry out the works as originally planned."
The project team say they are are 'drawing up a range of additional funding options' and the council insists it remains committed to the project.
"It is not known at this present stage whether this will mean a delay to the project or a reduced scope," the spokesperson added.