Douglas Council says it won’t be refunding any of the cash paid to it by Isle of Man Bay Festival organisers.
Leisure Services committee chairman Stephen Pitts says just over £6,000 was paid to hire Noble’s Park for four days.
After the event was cancelled, organisers asked for their money back – but the corporation says it’s under no obligation to provide a refund.
Councillor Pitts says the festival and its cancellation cost the council significant amounts of money.