Funding problems are forcing the Huddersfield Partnership to fold.

The organisation which has run many events - including the hugely-popular Huddersfield Food and Drink Festival - will shut down in August.

But officials have stressed that this year’s four-day festival, the 16th, will go ahead as planned in August, with help from Kirklees Council.

It will be held in St George’s Square from August 4 to 7, featuring dozens of stalls and traders.

A crime prevention scheme for retailers, run by the Partnership, is also to continue.

Vanessa Scrimshaw. who chairs the project, said: “The Huddersfield Town Centre Partnership has today informed its members and stakeholders that it will cease trading in its current format from the end of August 2016. The Partnership is keen to inform everyone that this decision will not impact on this year’s Food & Drink Festival, which will take place as usual in August.

Traders in action at last year's Food and Drink Festival

“Due to the success and popularity of the annual event it has now proven too large for our two-person team and limited resources. The council have agreed to step in this year to help us continue to deliver the event and discussions are taking place amongst the directors to ensure we are able to secure its future sustainability.

“The event is very important to the town and a lot of hard work has gone into it over the last 15 years. We are committed to ensuring the event continues beyond 2016.”

It is understood the Festival has run at a loss for some years, with huge costs involved in staging the event. This year organsiers hope they may break even.

But costs are massive; the cost of hiring portable loos for the event last year was £34,000.

The Partnership is a not for profit organisation funded through membership fees and schemes such as the Retail Radio and Crime Prevention app.

Watch: Last year's Food and Drink Festival

Video thumbnail, Food and Drink Festival 2015
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It receives no funding from the council and other sources of grants have dried up.

Ms Scrimshaw said: “The Directors now believe that it is time to look at alternative routes to supporting our town and from September 1 we will be focusing our efforts on researching the prospect of Huddersfield becoming a Business Improvement District. This will mean big changes for the Partnership and we are hoping to attract new Board Members who have direct experience of the BID process.

“We will look to maintain the services we currently offer which would, if successful, fall under the remit of a BID during the next 12 months rather than disrupt these valuable services.

“However it has become increasingly evident over the last 12 months that we will be unable to fund our usual membership services and retain our team, whilst also funding the BID research work.”

A business improvement district (BID) is a defined area within which businesses are required to pay an additional tax or levy to fund projects in the area.