A newspaper's sponsorship money for a community awards scheme has been given back after it carried an advert for the British National Party.

As one of seven sponsors, the Hampstead and Highgate Express gave £5,000 to the Exceptional People in Camden awards, which will celebrate the work of community volunteers in the paper's patch.

But now the local council has decided to cancel the sponsorship arrangement for fear of damaging the event's reputation following concerns raised by the community after the ad was published.

Ham&High editor Geoff Martin said: "It seems to be a decision that was taken without consultation with us. I would say it's a spineless decision.

"I am supposed to believe no undue political pressure was exerted? I am sure there has been.

"This decision has blemished the awards irreversibly."

The Archant weekly caused controversy last month when it ran the BNP advert ahead of the local elections but the company later said it would donate revenue from any adverts to charity.

The paper has been heavily involved with the awards, including running publicity stories, and was due to be represented on the judging panel.

Geoff believes that invitation is likely to be withdrawn in due course.

A spokesman for Camden Council said: "Camden Council has now made the difficult decision to end its sponsorship agreement.

"This followed strong and very public concerns raised by the local community and councillors across the political spectrum after the paper accepted an advert from the BNP.

"Our decision was taken by council officers after careful consideration around concern for the reputation of the council and the EPICs. This was not a political judgement about the Ham&High accepting advertising from the BNP.

"The focus of the event should be on the winners and other issues should not be allowed to get in the way of this important aim.

"We have explained our reasons to the Ham&High and thanked the paper both for its long-term support and the contribution it has made to the EPICs over the last two years."

The spokesman added that the council had enjoyed a "mutually respectful history" with the paper and hoped that it would continue.

"We do have a public notices contract with the Ham&High and will continue placing these along with adverts in the paper," he added.

"There is a clear difference between entering into a sponsorship agreement to promote our high-profile community award event and paying to place statutory public notices in our local paper to provide information to our residents."