Police have confirmed that an investigation into allegations of fraud relating to a popular wartime-themed festival in Lincolnshire has begun.

Organizers of the two-day Woodhall Spa 1940s Festival said last weekend the event would not take place next July due to “increased operating costs”.

They said in a statement on social media that they had alerted police to “a possible offence”.

Lincolnshire Police said the investigation was in its early stages.

A police spokesman said: “Lincolnshire Police are investigating allegations of fraud.

“As the investigation is in its early stages it would be inappropriate to comment further at this stage and we will update the public when possible.”

The Woodhall Spa Commission released a statement confirming the investigation on social media today.

They said: “Our team are currently liaising with Lincolnshire Police after the commission alerted authorities to a possible offence.

“As this is an ongoing investigation, we are unable to comment further at this time.”

The free event, which includes military performances and reenactments as well as flying displays throughout the weekend, was first held in 2012 and attracts thousands of visitors.

The Woodhall Spa Committee said last weekend “it costs so much to keep so many people safe [and] good service… has increased very strongly”.

Since they don’t expect costs to decrease in the coming years, they believe it’s time to “say a fond farewell.”

East Lindsey District Council leader Craig Leyland, who represents Woodhall Spa, said the festival had made a major contribution to the area’s economy over the past decade.

“Everyone has put a lot of effort into this, the organisers, the businesses involved and of course the visitors who come to enjoy what we have to offer at Woodhall Spa.

“This investigation, the news about it is truly incredibly sad news.”