AN international music festival that brings £1m in revenue to a town is facing an uncertain future after the local council said it could not afford a £24,000 grant.

Organisers of the annual two-week festival in Harrogate were told of the funding crisis this week, and said it puts the staging of the event in doubt.

The festival has been running for 38 years and features dancers, musicians and singers from all over the world.

Planning for this year's event, which is scheduled to take place from July 22 to August 7, was at an advanced stage before the announcement.

A festival spokesperson said: "The future of the festival is in doubt now. The grant from Harrogate Borough Council is the basis for the rest of our grants and has the biggest impact on what we do.

"The festival is not just about the two weeks. We do a lot of community and rural work, which are really important educational projects, right throughout the year."

The leader of Harrogate Borough Council, Mike Gardner, said the council cannot afford the festival's grant because their own funding from the Government has increased by only £53,000 for the next financial year.

Coun Gardner said: "This increase equates to a mere 88p per household for the next 12 months. This is derisory when you consider the Government is expecting us to spend over £600,000, which is £10 per household, on their initiatives such as more recycling, benefit fraud and e-government."

He also said that Starbeck swimming pool may have to be closed because of the spiralling cost of leisure services.

The final funding decisions on the festival and the baths will not be taken until March.