COUNCIL leaders say the fiasco surrounding the cancelled Love Parade will not scupper Newcastle's chances of becoming a European City of Culture.

On Saturday, Radio One executives pulled the plug on the dance music extravaganza, after Newcastle City Council failed to meet a deadline to agree conditions for an entertainment licence.

The council was given six months to organise the massive park-and-ride scheme needed for the showpiece festival, but failed to meet the deadline imposed by the BBC station.

It would have attracted 250,000 people - the equivalent of the city's population - and brought more than £15m to the region.

The council had hailed the free event as a major boost to the city's efforts to become a European City of Culture, in 2008.

Last night, a council spokesman said the public relations disaster would not dent its hopes of being awarded the title.

He said: "We do not think it will have adverse implications. If anything, it will make us better prepared to stage large events in the future. Next time we will know what the major hurdles are.

"While some people might think this has been a disaster, it would have been a much bigger one if something had happened next weekend and we had not made a decision on safety grounds."

The cancellation announcement came after the council had failed to satisfy Northumbria Police about several issues, the biggest sticking point being the provision of car parking and park-and-ride schemes.

BBC Radio One controller Andy Parfitt said: "On behalf of the dance and music community and dance music fans, particularly all those in the North-East that have shown us so much support, I express my sadness.

"Love Parade may be dead on the streets of Newcastle, but we will make every effort to keep its spirit alive on our airwaves and in local clubs and arenas."

The council confirmed that several pubs and clubs granted a late licence for the event could still open into the early hours.

A police spokesman said they backed the council's decision