POOLE Carnival has been pulled back from the brink after a council U-turn over "huge fees" and a shocking admission that it has been incorrectly charging organisers VAT.

The carnival committee came close to pulling the plug on the event after it was slapped with fees of £4,300 for closing the roads for the carnival procession and another £1,100 for hire of Branksome Rec.

Chairman Richard Wilson told the Echo the costs were so high last year they were only able to donate £50 to each of their chosen charities last year after all the fees were deducted. They were set to be even higher for this August's event.

But after pressure from organisers and ward councillors Borough of Poole has now almost halved the fees for the road closures to £2,352.

And, after it was pointed out to them, the council has also admitted is has been wrongly charging the charity event VAT on its services for the past two years - and has promised to refund the money, which the committee anticipate will amount to at least £500.

"I couldn't believe it," said Richard. "A week before we were on the verge of shutting it down - it just wasn't viable. Now the carnival will go ahead."

While he "welcomes with open arms" the move, he added: "We are fed up with the constant battles with the council. Year after year we are frustrated with the lack of support from certain elements of the council - it's like they don't want the carnival to happen. But we see the big smiles on the faces of children and adults and we know this is all worth it."

He added: "Just because they are under financial stress doesn't mean they have the right to use events such as this a fruit picking exercise to gain money. I don't think that's fair and its certainly not right."

Shaun Robson, head of environmental and consumer protection services, Borough of Poole, said they were "keen to see popular events like Poole Carnival continue," adding: "Whilst we still need to cover our full costs, we are working closely with the carnival organisers to minimise the risk of additional costs being incurred. We have provided a revised estimate to the organisers which has been accepted."

He said they had advice from the auditor stating that VAT should not be charged for this work and would be refunding VAT paid at the previous two carnivals.