Chorley Carnival will be held as planned next month, after organisers reached an agreement with council bosses.
The carnival committee took to social media on Wednesday evening to announce next month’s event was being cancelled.
They said Chorley Council had asked them to get ground reinstatement insurance or pay a £7,500 bond to cover the cost of any damage to the ground at Chorley’s Astley Park.
But the committee said they could not afford to pay it and would have to cancel the carnival instead.
Yesterday, crisis talks were held and council bosses offered to accept a reduced bond of £4,000.
This was considered by the carnival committee at a meeting last night and they agreed to the deal.
Paul Wilkins, carnival committee chairman, said about the meeting: “They realised we had done all the work and might as well carry on.
“We didn’t have that £7,500 and it would have had to be cancelled.”
And he said it is now “all systems go” for the carnival, which will be held at Astley Park from Friday, June 5 to Sunday, June 7.
He said: “It’s a weight off my shoulders.
“We had done all this work and I felt sorry for the committee, who had put a year in, standing in the rain at duck races and freezing cold at the drive-in movie to try and raise money, only for it to be cancelled.”
The carnival committee will hold a public meeting at 7.30pm on Monday at Chorley Little Theatre to discuss this year’s carnival.
Council leader, Coun Alistair Bradley, said: “After speaking with the carnival organisers on Thursday they made it clear they could not get that amount of cash upfront so we have come to a compromise.
“The agreement includes: confirmation from the Chorley Carnival group that a bond of at least £4,000 is secured; the committee to sign a legal agreement that includes a commitment to pay for all reinstatement costs to the park; the agreement will also include a commitment for the public accounts for the carnival group to be made available by the end of September.
“Let’s hope we get some better weather than last year and that there is a brilliant turnout.”