The festival takes over the streets of Brecon for a weekend

This year's festival will go ahead from 8-10 August against a background of a public dispute with Powys County Council.

The local authority has withdrawn an �11,000 annual grant towards the cost of the event which attracts around 50,000 people to the town.

Earlier this year, the festival was given more than �380,000 by the Welsh Assembly Government to secure its future.

Festival director Andy Eagle said the council's withdrawal of the grant raised some serious questions about its location.

"At the end of the day, does the town want it?" he said.

"Does the local authority want it? These are the sorts of things that make us think 'why are we bothering?'"

He said that other towns had courted the festival in previous years, and it could move.

It would be a great pity and a loss to Brecon Brian Henessey, Welsh Jazz Society

"It is a huge international festival - a unique festival where the whole town has a party for the weekend."

The money from Powys County Council went towards providing free jazz on the streets of Brecon during the festival.

'Tremendous reputation'

But the council said it had written off debts of �6,600 and the festival did not provide accounts in connection with the application.

The festival also had free use of council premises. In view of this and funding from the assembly and commercial sources, the council decided to withhold the grant.

A spokesman said that a letter had been sent to the festival organisers explaining the decision.

Brian Henessey, Secretary of the Welsh Jazz Society, said that, although he did not know the full reasons behind the council's decision, it had surprised him.

"I think it is a little short-sighted - the festival has a tremendous repuation worldwide," he said.

Andy Eagle questioned whether the town wanted the festival

"It is quite remarkable such a fine festival has been produced in a small market town in centre of Wales.

"It is something they should be appreciative of and want to retain.

"It brings a lot of commercial interest to shops, pubs and restaurants - it is a benefit to the town and a benefit to the county

"I wouldn't be surprised if there are other places anxious to attract the Brecon festival, with far greater facilities and potential for bigger audiences.

"It would be a great pity and a loss to Brecon."