Critics today lambasted the management of the festival and said the decision made Liverpool a “national and international laughing stock”.
Health and safety experts Capita Symonds were brought in by the Culture Company on July 27 to carry out a last-minute review of festival plans.
The company said the loss of the Pier Head because of building work would reduce the capacity to host the event.
It also said the reduction in public space, huge crowds and alcohol, would be a “significant safety risk”.
Mr Hilton said: “We’ve done everything we can to make sure the festival goes ahead and explored every possible alternative, but there comes a point where you can do no more, and this is it.”
Acting leader of the city’s Labour group Cllr Paul Brant said: “It’s a disaster for the credibility of the city and for thousands of holidaymakers who have made travel arrangements.”
Council officials today claimed they worked up to the 11th hour to try to ensure the festival went ahead.
They said the health and safety issues would not affect other birthday events.
Culture Company chief executive Jason Harborow said: “In many ways, Mathew Street has become a victim of its own success this year.
“The huge growth in the popularity of the festival, combined with the loss of the Pier Head, presented us with a massive problem.
“Unfortunately that problem has proved to be insurmountable.
“We worked hard to try to find a way to stage the event in the city centre, but even after months of planning we were still not satisfied.
“As a last resort we employed national safety experts Capita Symonds to see if they could see a way through these intractable problems. Sadly, they’ve concluded there’s still too great a risk.”
Merseyside police’s assistant chief constable Helen King said: “We fully understand why they’ve made the decision to cancel. Public safety has to be the paramount consideration.”
Director of tourism at The Mersey Partnership Martin King said: “It’s a huge disappointment for us as a tourist board and for our members who contribute so much to this showcase event.
“It will be a blow to thousands of visitors to the city who have already made their travel arrangements.”
Arts Editor Joe Riley says . . .
IT’S the most spectacular own goal imaginable.
The city’s international trademark music festival cancelled at the last moment.
Hundreds of thousands of tourists with their plans ruined.
The Liverpool economy short-changed by millions.
Worst of all, Liverpool’s pride tarnished in a wholly unprecedented way in our 800th birthday year.
It’s no good the city council and its culture company puppy arguing over who takes the rap. They are jointly responsible for having less vision than a cave full of bats.
It’s a wholly red-letter year for fans - 50 years since John met Paul, 50 years since the Cavern club was launched, 40 years since Brian Epstein died, 40 years since Sgt Pepper was released.
But now trashed by incompetence.
If it weren't such an all-round tragedy itwould win prizes as a farce.