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This year's City Festival in Leicester is a combination of several other events which were previously held separately, as the city council seeks to save tens of thousands of pounds.
The festival budget this year has been cut to £308,500 from £366,500 in 2012.
Next year, the budget will be reduced even more, down to £288,500.
Live music, Chinese dragon dancing and sports coaching sessions will fill the streets of Leicester as a two-day festival kicks off over the Bank Holiday.
The Leicester City Festival is an amalgamation of celebrations already held in the city, along with a number of new events.
Humberstone Gate West and Gallowtree Gate will Sports Fest throughout the day today, offering coaching sessions in basketball, football and boxing.
Community groups and clubs will hold a celebration in the market, while the Journeys Festival will set up for two days as part of a tour of the East Midlands, featuring art, drama, music and poetry from refugees.