Organisers of a popular festival have axed key events because last year's extravaganza made a loss.

Arundel Festival made a loss of £25,000, partly because of the foot-and-mouth crisis, last summer.

Events at Stage 2, the festival's venue for small performances, have now been cut to save cash but the Shakespeare production and opening fireworks concert remain.

Organisers said they have looked at all areas of the festival, which runs from August 23 to 31, to see where cash could be saved.

Mary Hamilton, spokeswoman for the event that this year celebrates its 25th anniversary, said: "It has been a very difficult year administratively and financially and we have had to make some big decisions. The biggest loss is of Stage 2 but we hope it will only be for a year."

The festival attracts 20,000 visitors a year and is the second biggest of its kind in the county. Brighton Festival is the largest.

Jim Braithwaite, chairman of Arundel Festival, said local councils and South East Arts pledged extra cash to help the event.

He announced the launch of a fund-raising drive to try to secure the event's future.

He said: "We will be collecting £2 coins during each performance at the festival to start us off.

"All money raised will be divided equally between the festival appeal fund and the Chestnut Tree House appeal."

The theme of this year's festival is celebration. Among the highlights is the return of the Tour De Force theatre company with A Midsummer Night's Dream.

Other highlights include the fireworks concert on the opening night.