The spirit of carnival is being dampened by the credit crunch, according to event organisers who say the traditional street collections are suffering as a result of local families tightening the purse strings.

Organisers of the carnival in Ilminster, Somerset, which was held on Saturday, had recruited their usual band of collectors who donned fancy dress to pound the streets and raise cash for the Dorset and Somerset Air Ambulance appeal.

Public announcements rang out throughout the evening, appealing to spectators to donate 50p each.

But committee member Jeremy Mitchell said his team had been disappointed by the donations of about £3,100, down by about 25 per cent on recent years.

He said: "After counting thousands of coins our street collection was in excess of £3,100 but unfortunately it's a considerable amount down on last year.

"We are very disappointed with the collection this year, if only every spectator had donated it would make such a difference.

"All we asked was 50p. Now just think for a moment, what can you actually buy with 50p?

"But the sized of the crowd multiplied by 50p equals a large donation for our main beneficiary Dorset and Somerset Air Ambulance and our local charities."

Crowd numbers were slightly down on last year in Ilminster but not enough to account for such a drop in donations.

Mr Mitchell added: "The crowds were down from last year but it didn't spoil the carnival atmosphere as the parade passed by with plenty of life and entertainment, lights, music and dancing."

For several years, the collection has hovered around the £4,500 mark but this year's significant plummet in donations seems to correlate with the bleak economic forecast.

The situation in Ilminster has been mirrored at other towns since the start of the carnival season last month.

Organisers of Frome's popular parade said collecting tins were not nearly as full as they had been in the past and although they were heartened to have raised £3,900, that was down by more than £1,000 on 2007 takings.

This weekend sees Chard and Castle Cary host their annual processions as the South Somerset and Wessex carnival circuits continue.

As always, the season is building up to the carnival climax in Bridgwater on November 7.

The event, the biggest of its kind in the world, raises about £30,000 every year which is shared between 15 local charities.