Producers from the British Shakespeare Company say unless costs and fees to stage the month-long production at Kirkstall Abbey are reduced, it cannot go ahead this summer.

The production, held in Leeds for the last 13 years, costs around £100,000 to put on, but founder, Leeds-born Robert Williamson, says a £30,000 shortfall, which includes a substantial chunk of council fees, means they simply cannot afford to stage it this year.

The move was slammed as a 'huge cultural loss to the city' by arts ambassador Councillor Bernard Atha, who said today: "The loss is huge to the city. This event is unique in its setting and a bonus for Leeds and its people."

Last year was the British Shakespeare Company's 13th summer in Leeds when the month-long event presented two classics Henry V and As You Like It starred former EastEnders star James Alexandrou and Stacey Roca, from The Office.

It was the theatre company's most successful year but now organisers say they need funding or financial support to keep the open air festival alive in Leeds.

Robert Williamson, founder of the British Shakespeare Company, comes from Leeds and he says it is a double blow for him to be forced to pull out.

The former Kirkstall Primary School pupil, who once re-mortgaged his house to keep the company afloat, said: "Despite huge support the Leeds Shakespeare Festival is to close due to rising costs such as accommodation for actors and the charges by Leeds City Council.

"The festival will not go ahead this year unless sponsorship, council backing or arts council funding is secured.

"This is due to huge cost increases in the last few years.

"The event attracts 15,000 people but is extremely expensive to produce as Kirkstall Abbey is transformed into a set."

Last year's set cost £20,000 to make and they have to build a 700-seater auditorium and pay up to 20 professional actors.

Coun Atha, chairman of Northern Ballet Theatre and recently retired chairman of the West Yorkshire Playhouse, was urging council leaders to re-consider the fees charge and said that other arts organisations in the city were heavily funded.

The company will continue to tour elsewhere in Europe and other British cities.

Coun John Procter, Executive Board member for Leisure (Con, Wetherby) said: "This is the first we have heard from Mr Williamson on this matter. Leeds City Council values the British Shakespeare Company's contribution to Leeds' cultural life and we are happy to sit down with Mr Williamson to see how we can help.

"I understand that Mr Williamson has to make a profit in order to survive but as a public sector body Leeds City Council cannot provide services free of charge."