East Lindsey District Council operates stall markets in Alford, Horncastle, Louth, Mablethorpe and Spilsby, but is more than £70,000 in the red.

Councillors are meeting on Wednesday to discuss the options, which include increasing charges, privatisation, and traders providing their own stalls.

A final decision is expected to be reached in two to three months.

'Added value'

David Lloyd, the council's head of policy and performance, said: "We've got to consider the role of markets in these towns and the local economy, to establish whether we need to run them at a deficit in these areas, and what their roles are for the local people.

"It may be worth running them on a deficit because they do give added value to the local economy, so we've got to look at these issues, more than purely the costs."

The review group will look at costs, location, how the markets are run and what services are offered.

Mr Lloyd said there would be "no hike overnight" and stall holders will be consulted before any decisions are made.