BBC Manchester has confirmed that a planned programme investigating Liverpool Culture Company’s handling of the city’s year long Capital of Culture event has been dropped. The Panorama programme was originally understood to be scheduled to air before the end of the year, and the ongoing BBC investigation had led to a variety of rumours about the possible damaging content of the programme.

However, a spokesman for BBC Manchester has now confirmed that the planned programme will not now proceed, although it is not known if the programme has been shelved temporarily to be shown at a later date, or cancelled altogether.

No reason for the abrupt cancellation has been given, although a BBC spokesperson did suggest that it remains a possibility that the programme may be revived.

“We have no plans to do anything this financial year, however we may come back to it next year. It is just not the right time for us,” the spokesman said.

Suggestions that the programme may have criticised the management of the city’s efforts had created anxiety among the city’s businesses and other stakeholders who hoped to profit from the PR boost the year long event would provide. It was feared that adverse publicity may damage the prestige of the city and the event.

The Capital of Culture proceedings have suffered criticism since Robyn Archer, the festival\'s Australian artistic director, announced that she had resigned for personal reasons in June 2006. It is understood artistic consultant Phil Redmond has taken over as de facto organiser.