Pontefract Liquorice Trust has passed responsibility for running this
year's annual town highlight– which drew in 25,000 people last summer –
to the council's events team.
A trust statement said it could not keep applying for the same short-term funding and, despite several cash bids, money had "dried up" after reserves were used to match donations from the council in 2008.

Trust vice chairman Kebir Berry said: "This is a sad day for the trust
as we have worked so hard in the past to ensure the success of the
festival.
"But we are pleased the local authority's events team has assured us the festival will continue to thrive under Wakefield Council's stewardship."
The trust took over the festival in 2003 and, with hard-working volunteers and arts company Faceless, saw it grow to a massive nine days of celebration in 2007.
Former trust chairman Peter Sykes added: "I think it is a great shame for people who have spent a lot of time building the festival into
one of the biggest and best in the region that it's had to be handed
over."

In 2008, the festival was cut back to one weekend when major funding
organisations said they could no longer help.
This year the festival is listed to take place on Sunday, July 12.
Pontefract South councillor Mark Crowther attended the crisis meeting where the festival's management was decided.
He said: "I think this is the right decision.
"The trust can't struggle any longer and we don't want to lose the festival, it would be a massive blow.
"The council took the right action and its events team has a great deal of experience."
Pontefract North councillor Clive Tennant said: "I'm relieved it's been taken over as the biggest fear was that it could be cancelled."

Stacey Burlet, the council's service manager for festivals, said running costs would be paid by the authority and sponsorship.
She added: "Wakefield Council is extremely proud of Pontefract Liquorice
Festival.
"This high quality event is great for local businesses and people and is helping Pontefract become a tourist destination.
"This year the council has been asked to assume overall responsibility for co-ordinating the festival, as opposed to a supporting role.
"We were happy to do this and are working with partners and local businesses to ensure high standards achieved in previous years are maintained."