THE future of a popular folk music festival that brings in thousands of pounds to Fareham and Gosport is under threat.

Gosport and Fareham Easter Festival organisers have had their bid for a £5,000 grant from Gosport Borough Council rejected.

Now Gosport's street entertainment and folk concerts planned for next year's festival from March 28 until April 1 look set to be cancelled.

The festival has been a regular fixture in Gosport's social calendar for the last nine years thanks to Gosport Borough Council's support.

The first that organiser Peter Chegwyn heard about the council's decision was a phone call from the Daily Echo. The former Liberal Democrat Gosport Borough Council leader described the Conservative administration's decision as a great shame and questioned whether it was politically motivated.

"The council's refusal puts a big question mark over the festival," he said. "Apart from Glastonbury all local authorities need backing from their local authority."

"People come from all over the country and North America to the festival which brings in half a million pounds to Gosport and Fareham."

He said hotels and local businesses all benefit during the five-day event. In the past it has attracted big names such as The Waterboys, Eddie Reader and Rolf Harris as well as performers from Australia, the USA and Canada.

Councillor Brian Taylor, chairman of the grants sub-board, said the council could not give any money to the festival because organisers did not submit a set of accounts with their application.

But Mr Chegwyn said he wrote to the council two weeks ago asking to be kept informed but received no reply.

He told The Daily Echo the festival's statement of accounts is with auditors.

Many of the festival's artists stay at The Belle Vue Hotel in Lee-on-the-Solent. The hotel is also a popular venue for some of the concerts.

Peter Driscoll, deputy manager, said: "Over the Easter weekend the festival always makes a huge difference to us and our turnover of Guinness. We have always enjoyed the artists staying here and their impromptu shows. It's a wonderful atmosphere.

"If the festival does not go ahead in its full sense, it will affect our business."

Last year's festival received grants from Hampshire County Council, Southern Arts but nothing from Fareham Borough Council.

Ticket sales help pay for the festival, which costs around £50,000 to stage.

Mr Chegwyn confirmed the festival would still go ahead at venues outside Gosport including Ferneham Hall, Crofton Community Centre in Stubbington and the Ashcroft Arts Centre.