TWO free festivals will not go ahead this summer unless new funding is found.

The future of the Stanley Blues Festival and the Allensford Festival became doubtful after Derwentside District Council decided not to back the events.

The festivals budget was a victim of cost-cutting measures, aimed at reducing council spending by £1m this year.

Paul Green, of Consett music co-operative Northern Recording, which runs the blues festival, vowed it would carry on.

"We're frustrated to hear that Derwentside are withdrawing their support with the event only six months away, as it makes our job of raising funds more difficult," he said.

On Monday, members of the district council's communities panel voted unanimously to set up a working party with officers from the Derwentside Leisure Services and Northern Recording. It will try to find alternative funding for the festival.

There is no admission charge for the blues festival, which costs about £40,000 to run. The council has traditionally budgeted to pick up any deficit after profits from the bar and other commercial activities on site. Last year, this came to £18,800.

The lack of a budget means that council officers will have to withdraw backroom support such as securing entertainment licences and managing the site during the event.

It has been running for 11 years and attracted more than 12,000 people last year. It is estimated to generate about £500,000 a year into the local economy.

Its inspiration was John Kearney, founder of Northern Recording, who died in December 2002, aged 55.

He nurtured it from beginnings as a low-key day with local bands and only 400 fans in 1993. A statement from his family said: "John was the inspiration behind the blues festival.

"The festival is a great tribute to him and his family would be extremely sorry to see it go.

"But we are sure that his friends at Northern Recording will do everything they can to keep it going for the thousands of people who look forward to it every year."

District council leader Alex Watson said: "An event as successful as the blues festival should be self-financing.

"There are opportunities for someone to make an honest pound out of this event."

The Allensford Festival, held outside Consett over the August Bank Holiday weekend, looks less likely to go ahead, as last year's event was cancelled when police raised fears about road safety around the site.

It has been plagued with setbacks and has not been staged since 2000, when it attracted 15,000 visitors.