The organiser of one of the major tents at this year's Pride festival has pulled out because she has been refused permission for a bigger marquee.

Kim Lucas said the refusal to allow her to expand the bar area under canvas at Pride in Brighton and Hove had made the venture unviable.

Ms Lucas, who runs the Candy Bar in St James's Street, Brighton, and another by the same name in London, said ground rent for the marquee was £6,300 this year.

That, together with insurance and other costs, would leave her facing a bill of about £20,000 if she went ahead with the Candy Bar tent at this year's Pride on August 7.

Ms Lucas said even if there was good weather and a bumper crowd she would struggle to break even unless she could increase the size of the marquee to attract more customers.

Ms Lucas said: "For the last four years I've committed myself to the event with a tent for about 500 people. Of those four years, I had two years of rain.

"I've come out of it even, so to speak, but this year the concessions have gone up so I'm not going to sign up unless I get a bigger tent.

"If it rains, you get people coming into the tent who are not necessarily Candy Bar customers. They're there to get out of the rain and people can't even get to the bar."

Ms Lucas, who has spent more than £30,000 refurbishing the Candy Bar in Brighton, asked the Pride in Brighton and Hove Committee, which organises the event, for a larger tent.

The committee passed the request on to Brighton and Hove City Council.

Ms Lucas was first told she could have a larger marquee but was then informed the council had refused permission.

She said: "I just wanted ground cover. Popstars had a bigger tent last year and Revenge and Wild Fruit have up to 2,000 people in their tents."

Ms Lucas said this year's event was not a good business opportunity for her company.

She said: "I have a business to run. It wasn't a choice I made easily.

"I do feel disappointed the Candy Bar won't be there. It has always been part of Pride."

The Candy Bar is hosting events supporting Pride in the run-up to the event and on the night.

David Harvey, who chairs the Pride in Brighton and Hove Committee, said: "Kim wanted another 10ft in size and the council said no because it's not a dance event.

"She's paying £6,300 for the ground rent for operating in the park and she has decided it may not stack up financially for her. She has made a choice and it's a business decision."

The marquee which would have been used by the Candy Bar will now be used by the Marlborough pub and theatre, a Brighton venue popular with the lesbian community.

Pride, the UK's largest free gay event, is non-profit making and raises money for local organisations and charities.

The event starts with a flamboyant carnival through the city's streets and ends with a party in Preston Park.