The City of Edinburgh Council and Unique Events are investigating whether the cancelled Edinburgh Hogmanay festival was insured.

Thousands of revellers were left disappointed when the New Year's Eve festival was cancelled due to bad weather. It is rumoured that no insurance was in place, leaving the organisers, who are refunding tickets, to foot the bill for the event. Experts have suggested that the cost of insurance cover may have been instrumental in the decision not to insure.

Paul James, claims director at event insurer Insurex Expo-sure, said: "Rates would have been off the planet. We don't like risks in Scotland because of adverse weather conditions."