The event is planned for fields near Denby in Derbyshire

RWB, or Red, White and Blue, is due to take place on the weekend of 4/5 August on a farm near Denby.

Amber Valley Borough Council's Licensing Panel granted the licence at a meeting on Monday.

People living near the site fear crowds could overwhelm the area but organisers said the event would be self-contained with its own security staff.

'Benefit local economy'

The authority has received 50 letters of objection to the event.

Speaking after the meeting, Peter Carney, chief executive of the council, said: "This was a finely balanced decision, made following thorough and careful consideration of all the issues involved.

"The Licensing Panel considered the representations from all interested parties, including the police, local residents and the applicant, to ensure that the application was dealt with in a fair and objective way, in accordance with all appropriate legislation."

Organisers have said the rally will boost local businesses.

Sadie Graham, a BNP organiser and Broxtowe borough councillor, said: "We will have people staying in local bed and breakfasts and using local shops.

"Having 2,000 people coming and staying on private land will benefit the local economy."

The BNP had said the event would go ahead if the music and alcohol licence was granted or not.