A major summer music festival looks likely to fold due to a £20,000 funding shortfall.

Organisers are considering pulling the plug on the Allensford Festival - which is due to take place near Consett at the end of next month.

A report from officers at Derwentside District Council recommends that the authority pull out of the free event.

In the document, Stephen Howell, head of leisure, says the authority does not have the resources or manpower to organise the show.

Officers had made several bids for National Lottery cash to bankroll the event, but were turned down.

The council's recommendation to pull out of Allensford came as a shock to Derwentside-based Northern Recording, one of the companies that helps organise the festival.

John Kearney from the firm said: "Northern Recording has built this festival up over the past ten years. It is very disappointing that the council don't appear to want to support us in the future.

"It is a major regional event which creates jobs, puts the district on the map and attracts 10,000 people.

"Clearly if the council won't commit to this event, outside investors won't either."

In April, Derwentside council decided to allot all of its £17,000 show budget to the Stanley Blues Festival, on the grounds that it would be easier to get National Lottery funding for the Allensford show.

But the bids failed, leaving a £20,000 hole in finance for the Allensford event.

Alex Watson, leader of the council, said it is a case of not having enough cash.

"The bids that were made for lottery money were not successful," he said. "It is not off the table yet and is still a consideration for 2003."

The event has become a victim of its own success. It was cancelled last year due to the foot and mouth crisis, but attracted 10,000 people when it was staged in 2000.

Its steady growth in popularity has seen costs spiral in order to comply with tightening Government health and safety regulations.

The festival's fate will be decided at a meeting of Derwentside District Council's executive in Consett civic centre on Thursday (AUG 1), at 3.30pm.