Secret papers seen by The News reveal that for the past two years Portsmouth City Council has accepted £12,500 a year from the owners of Clarence Pier to keep rival fairs at bay on summer bank holidays.

Officers believe the deal safeguarded local trade and wanted councillors to accept a further £12,500 from Clarence Pier this year.

But Tommy Russell, who started running Russell's Funfair on Southsea Common in 1989, complained the ban gave Clarence Pier an unfair advantage.

He told The News: 'I can't believe Clarence Pier was paying money to keep me off the common – how can one firm be allowed to dictate to the council like this?'

Last week he offered £16,000 to get a licence from the council and later upped it to £18,000, which councillors have now accepted.

But there was criticism of the arrangement that has kept Russell's off the common since 2005.

Jason Fazackarley said: 'It seems ludicrous – I can't see why officers seek to freeze out travelling fairs.

'I think it's a good idea to have them there because they are colourful and vibrant and give people choice of where to go. I dismiss the Clarence Pier claims as a lot of sour grapes.'

Deputy council leader Alex Bentley said: 'I do not see why we should guarantee one person's livelihood against another – this is a market place and markets have to compete.'

Defending the move, head of culture Stephen Baily said: 'The Clarence Pier operators are a local business, operating throughout the season, and felt that the travelling fairs were detrimental to their business on the busiest weekends of the year.

'The acceptance of the fee offered by Clarence Pier would reflect the fact that the Clarence Pier operation is a permanent local funfair attraction and Portsmouth City Council supporting a local business.'

Clarence Pier has not responded despite repeated requests to talk to The News.

emily.pykett@thenews.co.uk