A caravan bearing effigies of a gypsy family burnt was set on fire

They were arrested last October in Firle, East Sussex, after burning a caravan bearing effigies of a gypsy family and the number plate "P1 KEY".

Describing it as a "complex and challenging" case, the CPS said there was insufficient evidence to go ahead.

The society denies claims there was any racist intent behind its actions.

'Disorganised group'

Reviewing lawyer Patrick Stevens said that for anyone to be prosecuted, it could only be on the basis of their own words or acts.

He said the general picture which emerged from the evidence was of a "fairly disorganised group of individuals playing different parts in the event".

Speaking for Friends, Families and Travellers, Emma Nuttal said she was "extremely disappointed" with the decision.

"They were a bonfire committee and I would have thought there would have been some level of planning and cooperation", she said.

Insufficient evidence

Director of Public Prosecutions Ken Macdonald QC said he understood " the disquiet and repugnance of those who were offended".

"But in order to prosecute there must be sufficient evidence for a realistic prospect of conviction and if the evidence is not there, no matter how disturbing the allegations may be, the case cannot go ahead," he said.

The Commission for Racial Equality was among those who called for those involved in the effigy burning to be "punished".

Firle Bonfire Society has issued a statement saying it was "delighted" with the decision and that it would continue to be involved in bonfire celebrations.