Liverpool’s cultural programme may be hit by cuts due to take effect this year, although the scale of the cuts has yet to be announced.
Cuts could be up to a third of the budget, although this has not yet been confirmed.
The council have not announced the cultural schedule for 2013, but cuts could mean a slightly less spectacular events programme for the coming year.
An independent report was commissioned by the council to estimate the financial figures of the cultural events. The free public events in 2012 generated around £73m for the city.
Five free events organised by the council cost £2.1m of public money, but the profit produced for the economy more than made up for it.
The events were Sea Odyssey, the Olympic torch relay, Mathew Street Festival, Music on the Waterfront and the Tall Ship Regatta.
The biggest event was the Giant Spectacular, which lasted all weekend.
It was produced by French theatre company Royal De Luxe, where giants went on a journey through the city. It is estimated that around £46m was spent that weekend, in shops, restaurants and hotels.
The 2012 events created about 1,500 jobs and it was also estimated that each visitor spent approximately £40.
Although the cultural sector will face significant cuts, Liverpool city bosses have announced they will carry on staging more large-scale public events in 2013.
The city has formed a reputation for its spectacular free public events, as well as earning the title of the European Capital of Culture in 2008.
Other budgets which may be affected by cuts include the health and education sectors.