A ROW is brewing at the town hall over which of the popular festivals should be scrapped to save money.

The city council has capped this year's festival budget to just £150,000 and a number of festivals will have to be dropped or have their funding reduced.

It has been recommended that Lancaster's Georgian Festival Fair, Lancaster's Jazz Festival and the newly proposed Festival of Comedy be removed form the line up and that the Street Bands Festival have its budget reduced from £15,000 to £10,000.

But there are calls to keep the jazz festival which has been growing in stature since it was launched two years ago.

Green group leader, Jon Barry, said: "I think the council has got its priorities wrong. The jazz festival has been running for two years and is the only major festival in Lancaster City Centre. It is extremely popular and provides a platform for many local and regional performers."

He added: " I know the budget is tight for next year. However, I am proposing that we delay introducing two new festivals for a year - the money saved will allow the jazz festival to continue."

Independent leader, Tricia Heath, said more private sector sponsorship should be encouraged to make the festivals more viable. She said she would "look again" at the jazz festival and hoped the Georgian Festival could be saved by bringing it into the town centre by encouraging local businesses to take part.

The issues will be discussed at a meeting on Tuesday, along with proposals for the Bubbles complex.

A Blackpool-based company, Manor House Inns, has tabled plans to reopen the centre which includes turning the Dome into a nightclub and developing Bubbles into a wet and dry family play zone.

Morecambe's hoteliers and traders have pressed the council to do what it can to open Bubbles in time for the summer season.

They say tourists are keen to see the water-based leisure complex on the promenade open so that families have something to do.

Cllr Heath added: "We hope that the comments made by local businesses will show the political groups just how important Bubbles is to local trade, and other groups will support the Independents proposals to keep it open this time."

There are concerns that the expected sale of the Midland Hotel could fall through yet again. The company which has made an accepted offer on the landmark building, Magna Holdings, are said to want to develop the hotel as holiday flats alongside new housing.

But the council is expected to refuse any planning applications to developing housing on that land.