Manchester’s free music festival Dpercussion is in the midst of a cash crisis, so reported the Manchester Evening News and Manchester Confidential this week.

Steve Smith, from organisers Ear To The Ground, says two sponsors have pulled out, leaving him just two weeks to fill a �40,000-sized hole in his budget.

For the Castlefield festival, which costs �150,000, this is very substantial indeed. Even Manchester City Council who already contribute �30,000 must be holding their breath.

If the festival on August 5 is canceled, it’ll be particularly sad because of its origin:

“In 1996 a huge IRA bomb ripped the heart out of the city of Manchester. A year later the city of Manchester was determined to show its spirit of resilience and optimism with a series of various initiatives. A young music promoter called Steve Smith decided if the city was going to celebrate then it had to do so using its most powerful asset; MUSIC.

“The redeveloped part of Manchester with its canals, walkways and summer bars seemed like the perfect location. The name of the event was RE.percussion and its aim was to promote the positive repercussions of the bomb. People said that Mancunian’s would use any excuse to party. Not wrong.”

The following year, to commemorate another Manchester triumph - the creation of a computer with stored memory fifty years previous - the RE switched to a D (for digital) and Dpercussion was born.

Two years later:

“Snow Patrol (who were they?) played a lovely set and Mark E Smith refused to go on stage till he had his fee in cash almost precipitating a riot. The aftershow party took place at the surreal Granada Studios with people chilling out on Coronation Street to Manchester’s electronic beats.”

Last year’s festival was excellent, with performances from Durutti Column, Stephen Fretwell, John Stammers, Beats for Beginners, Jack Cooper, Jane Weaver, Liam Frost, Aidan Smith, Nine Black Alps and Badly Drawn Boy.

But funding has been tough: both 2001 and 2003’s events were canceled. And though Smith looked to have found some stability after successfully organising two events in successive years, he sounds far from positive about this year’s situation:

“It seems terrible that 10 years after the bomb, one of its most successful and positive responses is not being backed the private sector.”

UPDATE: The cancellation is officially confirmed on this PDF:

“MUSIC FESTIVAL BORN OUT OF THE BOMB CANCELED DUE TO LACK OF SUPPORT

“Dpercussion has been forced to pull the plug on this year’s event after two of its main local partners pulled out after promising increased level of support earlier in the year.”

BETTER UPDATE: Dpercussion is miraculously back on.