Banbury Carnival has been cancelled because of insurance problems.

The event, which has been running for nearly quarter of a century, will not go ahead this year because the members of Banbury Cross Round Table, which organises the event, could face personal financial ruin if an accident occurred.

Banbury Town Council, which arranged public liability insurance for last year's event, will not do so for 2004.

Round Table spokesman Paul Shea said: "We could be personally liable if anything went wrong. We could lose our homes - lose everything. It's something we're not prepared to do.

"Insurers want a risk assessment done, and they seem to keep moving the goalposts.

"It's an absolute minefield and many carnivals and shows up-and-down the country, where the local council is not involved, have been called off."

Mr Shea added: "Next year would have been the 25th annual carnival, but it must be very doubtful that the event will be revived after this year's cancellation."

Banbury's acting town clerk Peter Rooke said: "The council is not able to arrange the insurance because we are not the organisers of the event, but we have said that we can make a grant to cover the cost of the premiums.

"There are obligations to be considered by the organisers and clearly the Table has decided it cannot undertake those obligations."

However, the Banbury Show, to be held in Spiceball Park on June 13, will go ahead as planned.

Organiser Jo Dynan said: "We have arranged insurance. We have a lot to be proud of in Banbury and the show will once again highlight many of the good things.

"It's a wonderful chance for charities to promote themselves and raise money, and for local groups to perform in the arena."