MUSICIANS and their fans are campaigning against proposed licensing rules they say will kill grassroots live music.

Campaigners believe many pubs will have to stop music sessions if the Government's revamp of the public entertainment licence ends the "two in a bar rule''.

Under existing legislation, pubs must have a public entertainment licence if they stage bands but do not need one if no more than two musicians are playing.

But the proposed law, currently being examined in Parliament, will require a licence for all musical performances and will end the exemption for pub-based folk clubs.

Opponents of the proposals, including the Musicians' Union and the actors' union Equity, are concerned that pubs will be deterred from getting a licence by the cost.

Mike Prendergast, of Darlington Rhythm and Blues Club, said the proposals could have an impact on the annual festival the club stages in the town's Market Square.

Pubs host "festival fringe'' performances by duos and soloists but that could become illegal in those that do not have a licence, he said.

"We might have to scale down the festival and not have so much of a fringe in the evenings. It would spoil it. We are worried about the proposals because they could spell the end of live music," he added.

Hamish Birchall, of the Musicians' Union, said: "Lots of grassroots gigs will go. It isn't just rock bands, jazz and folk music depend on there being a grassroots basis. The scene is already depressed."

Culture Minister Kim Howells plans to hold a music industry summit on the proposals and have talks with the Musicians' Union.