PLANS for a second Gathering of the Clans on the eve of the 2014 independence referendum have been scrapped.

The Gathering that was due to be held in Stirling as part of the Homecoming celebrations has been axed due to financial concerns.

It was due to follow on from the 2009 event in Edinburgh, which attracted about 47,000 people and generated £10.4 million for the Scottish economy.

Criticism was made after the private company running the event collapsed, despite receiving £500,000 in grants and £180,000 from the Scottish Government. Some 100 creditors are still owed about £300,000.

Clan leaders around the world have been told the 2014 event is no longer on the table – disappointing those in America, Canada and Australia who planned to travel for the event.

The main Homecoming event will now be Bannockburn 700, a battle re-enactment in June to be run by the National Trust of Scotland. However, there will be no tented village, parade or pageant, it is understood.

Malcolm MacGregor, head of Clan MacGregor, who broke the news last week to American clan leaders during a Highland Games in Atlanta, Georgia, said: "There was disappointment and a slight sense of perplexity."

Stirling Council leader Corrie McChord said there had been reservations about the cost of the event – estimated at about £700,000.

He said: "Given the position of local authorities at the moment with budgets, I was concerned that the cost would grow in terms of underwriting the event."

Neither EventScotland nor VisitScotland would comment on the change of plan yesterday but a Scottish Government spokesman said: "The Scottish Government and the Homecoming Scotland team are working in close partnership with Stirling Council to deliver a range of events through Homecoming 2014, including those that will appeal to the international clan audience."