AMBITIOUS plans to upgrade one of the North-East's most popular tourist attractions are to be reviewed because of a £1m shortfall in the budget.

Beamish Museum, in County Durham, hopes to carry out seven projects costing £3m to enhance the visitor experience but has been unable to secure funding.

Director Richard Evans told the museum's joint committee, which is made up of councillors from local authorities in the region that support it, that its business and operational plan would have to be reviewed.

He said it was because One North East was unable to support its application for £1.5m for a programme of projects.

He said: "No reasons for this decision have yet been provided, although it is thought to be due to the well publicised reduction in both regional development agency and local authority budgets.

"The current lack of funding to support projects at Beamish means there is now a need to review the capital and revenue investment programme in the action plan."

Funding for an Edwardian fairground and pleasure park costing £500,000 is in place and it is hoped the feature will include a helter skelter and a miniature railway.

But plans to create a coal fired fish and chip shop, a bakery, a tea room, a photographer's studio have no financial backing.

The museum also wants to carry out a £650,000 refurbishment of the entrance building that welcomes visitors but has only secured £150,000.

Mr Evans said: "The current plan covers the period to March 31, 2011.

"There is now an urgent need to begin planning for the period beyond this time frame, to secure the long term future of Beamish as a world class resource for the people of the North-East region."

A spokesperson for One North East said the development agency had well established relationship with Beamish Museum and have provided £363,000 towards development work and the building of the New Lamp Cabin visitor facility since 2007. She said: "Unfortunately, due to intense budgetary pressures, it has not been possible to allocate further funding to assist with delivery of these plans in the current round.

"Discussions continue with Beamish to explore options for how the development plan might be achieved in the future and Durham County Council supports this approach."