A £20,000 loan from Brighton and Hove city council has secured the future of the struggling Brighton Pride festival.

The yearly event had run into trouble with a £50,000 deficit, which organisers blamed on the recession, rising costs and poor weather.

The £20,000 loan was supplemented with £14,000 gained from fundraising and cost-cutting measures which saved £11,000. One of three staff members was made redundant, while the other two were given reduced hours.

Brighton Pride was forced to cancel its winter event this year, while chair Yvonne Barker stepped down in November.

Acting Pride chair Robert Clothier said: “With our financial position secured, any uncertainty about this year’s Pride that there may have been is now over.

“We are committed to working with our new production company, Fisher Productions, all our other contractors, local LGBT businesses and community groups to make this year’s Pride festival better than ever before.”

“We have exciting plans for the Pride Parade and the main park event on Saturday 7th August, which will be announced very shortly,” he added.

A council representative said: “This short-term bridging loan is support the restructure of the Pride event as they deliver their 18th Pride in 2010.”