The cost of a county council project to realign the A59 at Kex Gill has increased to £68.8 million.
A North Yorkshire County Council report said the authority faces a £7.2 million shortfall on the cost due to a rise in inflation.
The project will see a diversion built west of Blubberhouses on the stretch of road, which has been blighted by a history of landslips. The A59 is the main route between Harrogate and Skipton.
County council officials originally estimated that the scheme would cost £61.6 million.
Of that figure, £56.1 million worth of funding has been granted by the Department for Transport and the remaining cost will be covered by the authority.
However, in a report due before an executive meeting on Tuesday, the council has now said it faces a further shortfall of £7.2 million in funding for the scheme.
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It means the council has had to increase the funding it is allocating to the scheme to £12.7 million.
As a result, the council intends to use £7.2 million from its Brexit reserve account in order to fund the scheme.
It said:
“Should alternative funding resources be secured, whether in part or in full, the reserve provision will be relinquished.”
Council officials expect work to start on the scheme next year and continue until 2025.
North Yorkshire County Council previously said it hoped the reroute would start in autumn last year and take 15 months.
Ahead of appointing a contractor for the scheme, a full business case will be submitted to the Department for Transport.
