A £500,000 project to refurbish the Great Western Hall at Steam is expected to be given the thumbs up by councillors next week.

It is hoped the refurbishment will make the museum a prime site for business conferences and events, and bring in a potential £50,000 a year.

If the scheme gets the green light, Steam would become the mandatory first choice for all Swindon Council events.

The cash will go on improving heating, lighting, sound equipment and toilet provisions, as well as carpeting and tables and chairs.

The plan is to have the work completed in time for the 175th anniversary of the Great Western Railway in 2010 – a landmark that will be celebrated at the museum.

Councillor Nick Martin, lead member for property, leisure and recreation, said: “If this were to go ahead it would give us a venue capable of holding up to 500 people, which would be of benefit to the museum and to Swindon.

“Rather than paying money to host events at other venues or renting equipment to bring to Steam this way we will be investing in our own facilities and reducing the subsidy on the museum.

“The plan is that as well as being available for conferencing facilities there could be a whole range of uses. If a brass band, for instance, wanted a space to use then they could book it out at a rate that was appropriate to their needs. We will borrow a large sum of money to do this but we have a sound business plan which shows that this will substantially reduce the museum’s subsidy.”

A report that will be presented to cabinet at the meeting on Wednesday shows that since the closure of the Oakfield campus Swindon Council has struggled to host events, which have instead gone to external venues.

The report claims that the refurbishment will lead to additional income being generated by the site, which would cover the costs of borrowing and eventually lead to a reduction in the museum’s subsidy of up to £50,000 per year.

The business plan for the scheme shows a potential for 27 conferencing and events booking, of between 100 and 300 guests, in the Great Western Hall during 2009 and 2010.