The Willow Festival will not be allowed to run on the Embankment after Peterborough City Council claimed it has not received the full amount owed by the event organisers.
The three-day music festival in July, which showcases local artists, is being billed by the council for the first time this year as the event is charging for tickets.
The council states this makes the festival a commercial venture, a point disputed by organiser Mark Ringer who says the event is not-for-profit.
A letter to Mr Ringer from Annette Joyce, the council’s service director: city services and communications, said that since May 28 2015 he had been “unable to comply with repeated deadlines and pay required fees.”
Mr Ringer said he had tried to pay the money asked by the council to use the Embankment but that it was refused. The council, though, says he was not offering enough of the £4,500 fee, which includes a £1,500 deposit.
Mr Ringer also denied that the festival was under threat, adding: “As far as we are concerned we are running it. We are going full steam ahead. There’s still a lot of talking to be done.”