Protests by residents of Lurgashall, West Sussex, have led the Department for Environment, Food and Rural Affairs (Defra) to refuse to give the educational charity a five-year Camping Exemption Certificate.
The certificate allows groups to run camps for more than 42 consecutive days, or for a total of more than 60 days in a 12-month period. The Woodcraft Folk currently has an interim certificate, which was issued in March, but if the dispute cannot be resolved Defra says it will not issue another certificate when this expires in November.
Without the certificate, which applies to the organisation rather than the site, the Woodcraft Folk would have to apply for planning permission.
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