COUNCILLORS have pledged their support for the North Wiltshire Festival after being told it faces a cash crisis.

Members said they would do what they could to help next year's event after organisers warned it could potentially make a loss of between £10,000 and £20,000.

The festival, organised by North Wiltshire District Council and held in Chippenham every two years, relies heavily on sponsorship from area businesses. But project leader Michael Paul-Williams said many firms had been reluctant to commit themselves following the September 11 attacks in New York and worsening economic worries.

Last Thursday festival organisers asked the district council's executive committee if it would agree to underwrite the cost of July's festival in the case of a worst case scenario.

Members said they realised the importance of the festival and that now was an important time to show their support for local industry.

They asked organisers to bring back a financial report to the committee in January, showing them what progress has been made, before they committed themselves to a final decision.

Council leader David Packham said: "The executive is very supportive of the festival and we discussed the difficulties that had affected the sponsorship income.

"It is essential that the district council continues to take a lead to support local businesses, which have been hit by so many external influences."

Festival organiser Laurie Bell said she was pleased with the council's show of support. "We feel at the moment, with the economic climate as it is, it is even more important that we go ahead and put on an event like this."

She said the figure of £20,000 was a worst case scenario and was confident the situation would not be so desperate in January.

"At that point we will have to look at what to do if there is a shortfall, and that could mean running a festival that is equitable with the money we have," she said.

"With the way the festival team are pulling everything together at the moment, I'm hoping it won't be a big issue."

Currently £20,100 in sponsorship has been secured from businesses. To break even on festival cost, organisers need to raise £120,000.

Mr Paul-Williams believes more sponsors will be signed up and more exhibition space will be sold. He said some savings could be made by cutting the number of marquees from four to three.

But, despite these cost-cutting measures, Mr Paul-Williams said he still anticipates a shortfall of £14,000.