NOTTINGHAM City Council will not be sailing the "Team Nottingham" yacht at the world's largest property fair in Cannes next year.

This year alone, the council forked out about £20,000 towards the yacht and expenses at the MIPIM fair, which it claims brings international investment to the city.

However, Councillor Jon Collins, leader of the council, said they "cannot afford it this year" due to less interest from the private sector.

In total, the trip costs in the region of £170,000, including the costs of hosting parties, hiring the yacht to hold meetings and dinners, accommodation, food and hospitality.

However, the private sector picked up most of this cost this year – leaving a bill of £20,000 for the council.

Mr Collins said: "The council can't afford it. I think it is a shame because in the past it's led to a lot of interest, incidentally led to investment, which is positive.

"This year it was looking like we would have to increase our contribution because our partners were feeling the budget pressures as well.

"If it were just £25,000 it would be a different issue. We were at a point where we had to commit some expenditure. It was beginning to look as if other parties wouldn't contribute."

In the past, the council has been criticised for spending too much on the event.

It spent more than £70,000 in both 2008 and 2009.

The council claims the city's high profile at the event has attracted investment – including the sale of the former Treasury building in Burton Street to energy group E.on.

Tim Garratt, director of property consultancy of Innes England, said: "The show is a hugely influential world stage.

"During the show there are towns and cities across the globe competing for inward investment.

"I do understand the sensitivities around a spend on a yacht when jobs are being threatened but the marketing of the city needs to go on. In times of recession, it could be argued we should be prepared to market harder – one day the market will return and the city needs to be ready to take those opportunities that present themselves."

The council has said it is not planning to send any staff to the event – or hire the Powder Monkey Yacht which costs about £30,000.

But Mr Collins said: "We'll do anything to help, short of accruing significant costs.

"I'm disappointed. We are where we are, it's not because the city council doesn't want to be part of it, it's because we'll have our budget cut by a third by the Government over the next four years."