A spokesman for the Morecambe Carnival Organising Committee said: "This has not been an easy or quick decision to make. Tens of thousands of people, both local and from further afield, visit the Morecambe Carnival each summer, coming to enjoy a unique and free weekend of entertainment, attractions, and events as well as to explore our town. We want everyone who comes to the Carnival to have the best experience possible.
"At the moment we cannot guarantee this.
"The Morecambe Carnival is a unique festival in the area. It is funded by many different donors, including local businesses, and it takes a great deal of time for the volunteer organisers to negotiate these sponsorships and partnerships.
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"Many businesses have suffered as a result of the pandemic and are not yet confident that things will return to normal over the summer.
"Other grant funding has not been confirmed due to similar uncertainty.
"A huge amount of forward planning is needed in terms of securing the major parts of the festival weekend, including stages, infrastructure, attractions and of course performers need to be booked and paid for well in advance of the event.
"There are also ongoing debates over the safety and prudence of organising large festivals that include large numbers of people traveling into the area en masse.
"And so, with the continuing uncertainty around event safety due to the pandemic, it hasn't been possible to secure this vital funding or confirm these major elements of the event.
"It’s for these reasons that the team have decided that we will not be able to run the event this year.
"To organise a smaller or limited event for 2021 would not reflect the ambitions of the team, the legacy of the event or the expectations of Morecambe.
"Rest assured the team are committed to bringing back the Morecambe Carnival once again in 2022 for another unforgettable weekend where we once again put Morecambe on the map.
"Thank you to everyone, our sponsors, partners, volunteers and of course the people of our wonderful community for their continued support."