Organisers of the borough's community festivals fear Barnet Council is trying to put them out of business by increasing red tape and reducing funding.

But the Tory-controlled council rebuffed claims from Labour councillors that it is planning to cut all funding to community festivals in 2004 and reassured residents that the future of festivals is 'safe in their hands'.

At Tuesday's full council meeting, Labour councillor Alan Schneiderman put forward a motion urging the council not to reduce funding and recognise the vital role of festivals like those in East Barnet, East Finchley and Cricklewood.

But Tory councillor Mike Freer, cabinet member for best value and effectiveness, dismissed the claims as scare-mongering.

He said: "We support the festivals in a number of ways, not least through officer time, free use of council facilities, as well as funding through the arts budget and my grants portfolio."

The council plans to organise the festivals through the borough's new artsdepot which opens next year. And Mr Freer said that, while festivals had never been promised funding for any year, there were no plans to reduce grants to organisers in 2004.

The council said it had increased funding to the East Barnet Festival from £1,563 in 2002, to £2,750 this year. But JJ Dunn, vice-chairman of the East Barnet Festival committee, said: "The red tape seems to have increased and, rather than helping out, they come up with lots of legislation to try and stop us putting the show on."

David Robinson, chairman of the Cricklewood Festival, said the event had to be slimmed down because the council had cut its funding by £2,200 this year.

"If we have to cut things back at the festival any more, it may not be worth doing it," he said.

Liberal Democrat councillor Susette Palmer, who is also chairwoman of Barnet Borough Arts Council, accused the council of a U-turn after it had previously indicated it would not fund festivals.

"The important thing now is to hold them to it," she said.