THE hugely popular Lymington and Pennington carnival has been cancelled following a row over red tape.
Lymington Lions claims new rules relating to road closures have made it impossible to stage the event.
Plans to hold a £10,000 medieval fair have been scrapped for similar reasons.
The town council had hoped to commemorate the 750th anniversary of Lymington's first fair by staging a knights' tournament and other attractions.
But councillors were told heavy traffic would make it necessary to introduce a temporary one-way system marshalled by dozens of volunteers.
Lymington Lions say the carnival has been cancelled because regulations introduced by the district council had prevented them from obtaining their normal insurance.
Carnival spokesman Martin Ward said: "The indemnity is a catch-all document that's too widely drafted - our insurers can't assess the risk they're supposed to be insuring.
"We're very disappointed because the carnival is a major plank of our fundraising and last year's event was very well supported."
Mr Ward warned that Brockenhurst carnival, another event organised by Lymington Lions, could also be cancelled.
Lymington mayor Pauline Elsworth said: "The carnival is part of the calendar and we're very disappointed it's not going ahead but the paperwork and bureaucracy have got too much."
However, the decision to scrap the event has mystified other carnival organisations.
Ray Sales, chairman of Milford-on-Sea carnival, said: "The district council has made the road closure form a bit more bureaucratic but I can't see anything to prevent us going ahead."
Ringwood carnival is due to take place on September 20 and floats will be taking to the streets of Netley Marsh on June 21. The Sway and Copythorne processions are also said to be safe.
Mr Ward replied: "Our insurers found the road closure indemnity to be unacceptable. If other organisations feel they're covered, we wish them well."
Asked about the prospects for next year's carnival he said: "We will try to overcome these difficulties but we expect sensitivity and flexibility from the district council."
But Chris Treleaven, the council's cabinet member for planning and transport, said: "The organisers' responsibility for ensuring that their event proceeds safely is more overt than it used to be but that's the only change.
"The rules are no more onerous than they used to be."
He added: "We very much regret any event having to be cancelled. We are continuing to pursue every avenue we can to assist organisations in getting insurance."
