Two of Brighton’s most popular events are at risk after their Arts Council funding was cut.
The Children’s Parade and Burning the Clocks are run by Same Sky, which has lost its £100,000 annual funding from the arts organisation.
Brighton and Hove City Council is to hold discussions with Same Sky about the future of the two events after their funding runs out from the end of March 2012.
The council has pledged to investigate what it might do to help Same Sky and the North Laine arts venue The Basement, which had been hopeful of new funding but missed out.
The council had already decided to fund Same Sky with £35,000 a year until 2012-13.
A crowd of up to 40,000 people attend Burning the Clocks to mark the shortest day of the year each December.
About 6,000 people and all Brighton and Hove schools take part in the Children’s Parade at the start of the Brighton Festival every May.
The cuts come at a time when the council is also feeling the pinch, having had to save more than £30 million.
But, although a bail-out is unlikely, officials say that they will talk to both organisations to see how the council may be able to help.
A council spokesman said: “Generally the city did well in this spending round.
“But we’re really disappointed about Same Sky and the Basement.
“We value both organisations and will work with them in terms of their future plans
“Both Burning the Clocks and the Children’s Parade are unique and long-standing events that attract thousands of people.
“Same Sky has done some brilliant work getting people participating in art and enriching the lives of adults and children.
“Basement has been showcasing cutting-edge work – the kind of thing you really can’t see anywhere else in the region
“We’re going to be speaking to Same Sky and the Basement to see what we might do to help.
“But obviously in times of spending restrictions for councils too it’s a very difficult situation.”
