AMBITIOUS plans for a £50m revamp of one of the region’s biggest attractions have suffered a setback - after a major funding bid was rejected.

The director of the National Railway Museum in York, Judith McNicol, confirmed an application to the Heritage Lottery Fund for £13.4m had been turned down.

Ms McNicol said: “We will now take some time to review the phasing for the projects that form our vision and how these best fit with the exciting plans for York Central.

“Whilst we are disappointed to receive the news that our Stage One bid to the HLF for £13.4m to redevelop the Great Hall and create a new Open Store and Wonderlab was not successful, we remain completely committed to our vision.

“Alongside telling epic stories, we have a vital role to play in engaging the next generation of engineers and helping to plug the skills gap through inspiring young minds.”

She said it was hoped funding could also come from central and local government, foundations and other funding streams, and added: “We are very fortunate that there are a lot of people who are very keen on the railways and engineering. They are very keen to support us, which is fantastic.

“I am very optimistic about the opportunities for other funding given the enthusiasm that has been shown for our vision.”

The news cames as the museum unveiled Britain’s first prototype "Hyperloop" pod, developed at the University of Edinburgh, as a sign of the organisation’s focus on the future.

Hyperloop technology could one day see passengers travelling in pods at speeds of up to 650mph inside near-vacuum tubes.

Ms McNicol said the museum’s ambition is to become “more relevant” and inspire the engineers of the future.

She added: “The new Hyperloop pod is about the possibilities of travel in the future.

“It is testing out what is possible, the same way Stephenson’s Rocket did in its day. The possibilities for the future of travel are exciting."

The pod will go on display at the museum later this year.