A NEW sponsor for the Blackheath Fireworks Display is being sought after budget problems at Lewisham and Greenwich councils.

In a draft budget report for 2006/7 officers at Lewisham Council outlined a shortfall of £45,000 between the two councils.

And unless a private sponsor is found for the event they will both continue to overspend on their budgets.

Lewisham Council currently has a £17,000 budget shortfall and Greenwich has a deficit of £28,000.

A Lewisham council report proposes saving £12,528 by stopping its contribution towards the fireworks.

But it recommends using £17,000 to pay for a manager to search for a private sponsor.

Savings made from the budget cuts would be channelled into other major events such as People's Day and Black History Month.

A spokesman for Greenwich Council said: "This is a well-established event, displaying some of the best free fireworks in London.

"We are keen to ensure people can continue to enjoy it."

He added: "We will continue to seek private sponsorship for the event to reduce the council's contribution."

A decision on Lewisham's funding will be made at tonight's mayor and cabinet meeting.