A carnival on Teesside could be scrapped if plans to build houses on its site are approved.

Organisers of the Billingham Carnival and Flower show say that if Stockton Borough Council agrees to the plans, there will be no room for their show tent and three fairground rides, which attract hundreds of summer visitors.

And they claim that local shops and businesses will see a drop in trade, because part of the land is used for parking.

Tees Valley Housing is proposing to build ten bungalows for elderly people on the strip of land known as the Bullgarth, off Station Road, Billingham.

Roger Black, chairman of Billingham Regeneration Partnership, is forming an action group to fight the proposals.

He said: "Billingham carnival and show is one of the great success stories of this area, but now it is in danger of being scrapped. There is no other land suitable for our show tent, or the rides. If permission is granted, I honestly don't think it is worth staging the event next year.

"The land is a public amenity and valuable open space for children to play in safety."

The three-day carnival has been running for ten years and has raised thousands of pounds for charity.

Mr Black said: "We will fight it all the way. If permission is granted, Stockton council will have badly let down the people of Billingham."

A public meeting has been called to discuss the application and the campaign. It will be held in Visions pub, next to Bullgarth, next week.

Geraldine Wilcox, group operations manager at Tees Valley Housing, said: "This is a matter for Stockton council to decide. We were not aware of any issues surrounding the land - we were just aware that it had been up for sale for some years.

"We have an allocation to fund developments like this in Billingham and, if we don't build soon, that money will be wasted. This matter about the carnival has only just come to light for us.

"We have no wish to offend the local community, and we shall abide by whatever decision Stockton council makes.