A council faces a financial crisis over safety fears at a holiday park.

Adur district councillors have been told they could face prosecution individually in the event of an accident at Golden Sands Caravan Park.

They have been advised not to renew licences for next summer for the 90 mobile homes at the park on Lancing seafront.

That would result in Adur losing £130,000 in vital rental income and force a possible rise in council tax.

It would also leave caravan owners unable to use their holiday homes for all or part of next year.

The move comes after "significant fire and safety" risks were highlighted at the park, which has been used as a summer retreat by some of the owners for 50 years.

Peter Latham, environment and housing director at the council, has written to caravan owners warning of the problem and has agreed to hold a meeting with them.

He has also sent them a seven-point safety plan on how to deal with gas and electrical safety on site.

He said: "The council has been considering the future of Golden Sands for some time now.

"In July it was agreed we would produce a business plan to assess the possibilities for the site. Since then, however, concerns about safety have been raised.

"Because of this we are recommending the site's closure at the end of this season in order to take stock of the situation and see if we can overcome these problems.

"We are talking to the licensees and they are aware of these concerns. We have also given them safety advice.

"We understand they are upset but hope they realise we are doing this for safety reasons and not to spoil their enjoyment of Golden Sands."

The move could see caravan owners unable to use their holidays homes at all next year.

They believe it is part of a continued effort to get them off the site.

The council intends to keep the park open until 2012 and was drawing up a business plan when the effects of the safety problems came to light.

Chris Jones, 57, chairman of Golden Sands Residents' Association, and his partner Margaret Hall have owned a caravan there for ten years.

They spend their summers in Lancing and live in Tenerife for the rest of the year.

Mr Jones, a builder, said: "I am dumbstruck the council has come up with this.

"We will consider legal action to stop it and have arranged a meeting with Peter Latham.

"The council makes £130,000 a year in rent and if it loses that it may have to cut services or put council tax up by three per cent.

"They have allowed three new vans on to the site this year and now they are telling everyone they will not get their licences renewed next year.

"The only reason they are doing this is because they want to get us off the site so they can build social housing here."

Joan Burkett, the association's vice-chairwoman, uses her caravan as a summer holiday home and spends the rest of the year living near Marbella, Spain.

She said: "Some people have been coming here for between 30 and 50 years. We wonder if we will ever be allowed back here if our licences are not renewed next year."

The council's housing committee will meet to discuss the crisis next Tuesday.