HOPES this year's Kidderminster Carnival would raise £5,000 for Kemp Hospice have been dashed after a bid for lottery cash was rejected.

Awards For All has thrown out the committee's application for £4,705, ruling the event no longer meets its criteria.

The carnival has benefited from grants totalling £7,520 during the last three years, which has enabled it to give bigger donations to charity.

Sponsorship officer Duncan Cashmore said he and the rest of the committee were "bitterly disappointed" the bid had been turned down.

"We have been able to give £15,000 to charity since 2000 largely because of the Awards For All grants which have gone a long way towards off-setting the costs of staging the carnival.

"This is a major blow for us and for Kemp Hospice which is our chosen charity for the year," he said.

"We always look for sponsorship from local businesses and will have to do so with extra gusto now, but things are tight economically and firms just don't have spare cash hanging around.

"I just hope under the circumstances companies will find it in their capabilities to dig a little deeper into the coffers to help fund what is the town's only community event and a major fund-raiser."

Awards For All senior officer Tina Costello said the carnival had been given grants in 2000 and 2002 to mark the Millennium and the Queen's Golden Jubilee.

"It received a grant in 2001 as well, so I think we have been quite supportive of the organisation, but we cannot just keep on funding groups' running costs," she said.

Miss Costello claimed another reason for the refusal was the carnival had not developed, but this was denied by Mr Cashmore who said the carnival, set for June 21, would feature a craft exhibition for the first time and a duck race a week earlier.

Miss Costello added Worcestershire had done particularly well from Awards For All West Midlands and although bids from the county were not being discouraged the grants were being actively marketed in North Solihull, Sandwell, Walsall and Dudley, from where there had been few applications in the past.

Anyone interested in sponsoring the carnival should contact Mr Cashmore on 01562 750505.