There will be no Saul Canal Festival and Folk on the Water Weekend in 2009.

Directors of the Cotswold Canals Trust accepted a recommendation from their trading arm at their monthly meeting that the deepening economic crisis would radically affect a 2009 event, made worse by the ever-increasing costs of the services and infrastructure needed to stage the popular festival.

“We considered all the facets at length and very reluctantly concluded that it would be imprudent to continue with plans for 2009,” said Mrs Elizabeth Payne, the Trust chairman. “Knowing how many people all over the country would be disappointed, it was a tough decision to take.”

Saul Canal Festival & Folk on the Water Weekend has been THE local annual event for the past 12 years, drawing crowds to the picturesque waterside venue for a weekend of boats, music and family entertainment.

In 2007, it had to be cancelled at the last minute because of floods at the site. Instead of a surplus of about £30,000 for canal restoration that cancellation cost the Trust about the same sum to underwrite the losses.

In July this year, the weather was kinder on the Saturday, bringing in the usual number of visitors, but the following day's torrential rain resulted in a severely reduced attendance and a substantially decreased surplus.

“The festival has grown in quality and popularity over several years,” said Clive Field, the festival director “but the attendance has now levelled off and it has probably run its natural course.

“It is a massive effort and takes more than 400 volunteers, 38 managers, and a monthly steering group over ten months to make it happen. Since 2001, we have raised over £136,000 for restoring the Cotswold Canals – an incredible effort from all who help.

Thanks are also due to the support we have had from our traders and suppliers. We are forever grateful to them all.”

Cotswold Canals Trust is now looking to hold other awareness and fund-raising activities in future, taking the emphasis away from a one-off huge, but expensive, event.