Events across Wyre Forest could be at risk this summer after the council announced a ban on bouncy castles.
Dave Griffin, the owner of events hire business Quads 'N' Castles, said he was "upset" and "disappointed" when he received an email from Wyre Forest District Council to tell him inflatables were now prohibited on council land.
The email was sent out to both suppliers and those who had upcoming events planned on council land, including in Brinton Park, due to insurance companies no longer offering cover to the council for inflatables.
The move has been branded "health and safety gone mad" by one councillor who believes the council should be standing up to the insurance companies.
Mr Griffin, who is also a founding member of homelessness charity HELP, has also fought back against the council's claims and insisted that any issues would be covered by his insurance and the council would not be liable.
The council has said it is doing everything it can to resolve the issue.
He said: "I just think it's absolutely ridiculous. I have been helping out in the community for many years now and I'm the main supplier for West Mercia Police and West Midlands Police, social services and school events.
"I supply the events and offer wristbands at discounted prices so children from the most deprived areas don't miss out. This new rule has come out of nowhere as we've never had any problems or accidents at our events.
"Not all parents can afford to take their children to Alton Towers or pay for extortionate fairground rides. The community are the ones who will suffer most from this.
"The children will miss out but also the parents will potentially have to dip into money set aside for bills to make sure their children don't go without over the summer."
Mr Griffin said he was insured for up to £10 million but his other clients, including West Mercia Police, said they only required him to be insured for £5 million.
He reduced his insurance liability to £5 million at the end of May, but he is willing to increase it back to £10 million if it makes the council change its mind although he claims the email sent out suggests they are unwilling to negotiate.
He said: "We are first aid trained and insured, we are fully staffed and health and safety checks are always carried out before we let children use our quad bikes or bouncy castles.
"I have 24 staff and now I am going to have to tell some of them that I don't have work for them.
"We just want the children to have a fantastic day out and I am more than willing to upgrade my insurance cover back to £10 million if the council will change their mind, but I have tried to contact them and they seem unwilling to negotiate."
Councillor Fran Oborski has agreed with Mr Griffin and called the decision "health and safety gone mad".
She said: "It strikes me that the council have taken a step too far with this rule. It is completely ludicrous and the insurance companies are killjoys. The council should be challenging these companies.
"Dave does so much in the community and won't even let children get on the council castles if it is too windy. He has all the health and safety in place and insurance he needs for the inflatables.
"I completely agree that liability, insurance and health and safety needs to be a priority for the council, but this feels a bit like health and safety gone mad.
"The council has said 'inflatables' are prohibited. I think this needs to be better defined as could this include balloons. Imagine not being able to take balloons on council land."
In response to the concerns, a spokesperson for Wyre Forest District Council said: "We really don’t want to be spoiling children’s fun or stopping there from being bouncy castles at events in our open spaces.
"We are trying to balance the mitigation of risk and act in a way which doesn’t impact on the community. The position at the moment is a hirer must have the appropriate cover, which is £10 million.
"There are other conditions which need to be met too so that everyone is covered. We are working on this and we’re hopeful that we can resolve this issue shortly. We don’t want anybody to lose out."
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