Traders are blaming a council for the loss of a tourist attraction after it demanded a cut of the profits made by a children's train ride.

They said the council's demands lost a seaside town a lure for visitors and the nearby shops and cafes their trade.

Arun District Council has been criticised for demanding ten per cent of turnover from at least two miniature train rides in the area.

Kevin McCluskey, owner of Diddlys train, said he was forced to close his track at Hotham Park, Bognor, and move to Brooklands boating lake in Lancing, where he deals with Worthing Borough Council instead.

He said: "Basically they wanted ten per cent of gross and a considerable amount of money upfront.

"It was our second year there and it's a great shame because we love Bognor. The only people to suffer are the kids.

"The council shot themselves in the foot. They said they'd charge me £100 a day."

Mr McCluskey moved the track to Lancing where he said the firm had a good season.

He said: "It's worked out fantastically. We've got the cafe and boating lake and we're opening the play barn. In Bognor we were getting our drinking water from the gents' loos."

Zoran Bilbik, who runs the cafe in Hotham Park, said the closure of the railway had jeopardised trade.

He said: "This is some kind of mafia and it's affecting my business because there are no attractions left in the park. I'm 30 percent down on last year's takings."

A spokesman for the council said it was negotiating for a replacement operator.

However, Colin Evans, owner of the Littlehampton miniature railway, said he was also in an ongoing dispute over the council's demands for money.

He said: "The council are giving me a lot of hassle, wanting more money but I'm sticking around. I took this over with my wife and lost her three years ago to cancer. The train is called Lady Barbara in her memory so I've got big ties to it.

"Discussions are still going on with the council. No one's going to turf me out."

A council spokesman said: "Mr McCluskey took over the remainder of a licence from a previous train operator.

"A proper lease needed to be entered into and Mr McCluskey was offered one but declined to enter into it.

"However, the council is negotiating with an interested party and is confident a miniature train will be operating in Hotham Park from the beginning of next year's tourist season.