A new street market in Oxford has been cancelled at the last minute because of confusion over insurance cover.

The Cowley Community Market was due to be launched in Manzil Gardens, east Oxford, on April 26 after the success of a trial event.

But organisers revealed on April 25 that they had been forced to call off the event. They blamed Oxford City Council for changing its policy, leaving the market without adequate public liability insurance.

They said they were only told of the problem late last month and had been unable to find alternative, affordable cover in time for today's launch.

But Oxford City Council said it had never had public liability insurance for the market and only altered a policy over theft of the market stalls, which it owns.

Cowley Community Market was set up with funds from East Oxford Action, to help raise the profile of local organisations.

At the trial market last December, several groups such as the Restore mental health charity, St Mary and St John Church and Hertford Street bakery took part, selling goods ranging from Christmas trees to fresh bread.

Because of its success, plans were drawn up for a regular market and a grand launch was planned for April 26.

It has since emerged that in autumn last year the city council, which owns the 20 stalls due to be used at the market, changed its insurance policy, meaning the stalls were no longer covered for theft.

The decision was taken because the excess the council would have had to pay on the stalls was £5,000.

The chairman of the community market committee, Elise Benjamin, said: "We understood that our insurance was covered through the city council, which is one of the partners behind East Oxford Action, but that's not the case. The insurance was changed without our knowledge. We're finding it difficult to find anyone to insure the market."

Val Johnson, neighbourhood renewal business manager, said the council's insurance would never have covered the market. She said: "If there has been some misunderstanding about the insurance then I will endeavour to correct this."

Ms Benjamin said it was now hoped to launch the market during the Cowley Road Carnival in June.

Tell us what you think.