City chiefs have warned that a £1m reserve earmarked for the celebrations may be "inadequate" – with nearer £3m needed to ensure top-notch events can be delivered.

And the Evening Post has also learned that the bulk of the Guild could be held solely in September – rather than throughout 2012 – to cash in on the feelgood factor of the London Olympics held a month earlier.

Under-pressure council bosses insist that they will find the money from private sponsors.

But one leading business expert has warned that getting the £3m in time for 2012 could be impossible.

Council leader Ken Hudson remained defiant, insisting that they will put on "the best Guild ever".

And he denied that holding a September celebration would reduce the year-long event to a "Guild month".

He said: "We will put on an absolutely splendid show – it will be the best Guild ever.

"We are thinking of employing a Guild director whose job it will be to raise funds via the private sector and I am 100% confident.

"Complete with the cultural Olympiad of the Olympic Games, the Guild is a real opportunity for Preston to celebrate 2012. We could tap into funds that way.

"We are certainly going to concentrate on September, but there are certain events that cannot take place then and will be spread out. We have got four years – we're not chasing money at the last minute."

Preston mayor Coun John Swindells said: "I don't know the figures as yet, but we are bidding to the North West Regional Development Agency for funding.

"We are only allowed to raise £1m from taxpayers – the rest we will have to raise ourselves."

Coun Swindells said a council-commissioned survey of 500 Prestonians found most residents wanted a Guild concentrated in September. He said the results would be discussed at the next Guild Committee meeting on Wednesday.

He said: "There's a short gap between the Guild and the Olympics. It could give us an opportunity to hire out marquees or contractors used in London at a reduced cost."

Council spending at the last Guild in 1992 went £1.6m over the original budget, partly because of hefty preparation costs and poor weather affecting attendance at paid-for events.

An events programme for the Guild has yet to be confirmed, meaning the overall £4m cost is an estimate based on costs of previous Guilds.

Nicholas Watson, of Preston Chamber of Trade, said: "To get that level of sponsorship in an Olympic year and raise it within Preston is going to be a big ask.

"A lot will depend on the economic situation we are in that year.

"I'm not certain whether there are enough large employers who are capable of giving say £100,000.

"And, certainly with major companies, any money spent that year will probably be going towards Olympic connotations.

"Any sponsor will need to be sure their money will get the return they require and that will put pressure on the Guild to raise its profile nationally."

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