A local Cumbrian weekly paper has ceased production after five years due to financial difficulties.

The North West Observer, owned by HIT Media Ltd, maintained a circulation of about 2,000 after being set up in October 1998, but never became profitable.

Editor Joe Cowell said the paper suffered from a fall in advertising revenue during the foot-and-mouth outbreak in 2001.

He said: "Advertising revenue dropped drastically by at least 70 per cent and never fully recovered.

"The paper was always subsidised from our other work but served a community purpose."

Although the North West Observer is no longer in production, Joe is hopeful it can be resurrected in the future, possibly produced by HIT Media Ltd in conjunction with a regional development partnership.

He said: "There is a strong chance that it will return, hopefully even by the end of the year - there is a need for the paper in the area."