THE rebirth of a popular family festival is in jeopardy, after it became the latest casualty in a series of council budget cuts.

The Allensford Festival, which in the past has attracted thousands of visitors, was due to return to the events calendar in Derwentside this summer, after a three-year absence.

The festival, which is scheduled for the August Bank Holiday weekend, is free and has traditionally relied on council funding.

But Derwentside District Council is cutting £1m of spending from its budget this year in order to keep an election promise of maintaining its council tax increase at 2.5 per cent.

Leisure activities, including the festival grant, have been hit hard by the cuts.

Paul Green, from co-organisers Northern Recording, in Consett, said: "We are disappointed in the district council's decision to withdraw support for the Allensford Festival.

"This was a fantastic, family event that was enjoyed by thousands of people across Derwentside and all over the North-East.

"The hard work had been done in establishing the event over the past ten years.

"To see it stopped now will be a substantial loss to the audience, as well as the many performers, technicians, traders and event staff who took part."

The most popular attraction was Allensford Roots on Monday, when bands from across the region took part in a day of rock and roots-based music, organised by music co-operative Northern Recording.

It was founded by the late John Kearney, the man who also created the Stanley Blues Festival. At the last event more than 8,000 people turned out to see Lindisfarne.

Councillor Alex Watson, leader of the district council, insisted all was not lost.

"It has been a very popular event and I am confident that sponsorship can be found to ensure it goes ahead," Coun Watson said.

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

Last year's festival was cancelled amid a row between the council and emergency services, after the local authority refused to adopt a park and ride scheme to quell police fears over road safety.

It was cancelled in 2001 because of the foot-and-mouth epidemic. There was no event in 2002 after the council failed to win National Lottery cash to fund it.