HOTELS across Liverpool are booked up as the city hosts one of the biggest party weekends of the year.

Despite the dismal weather, 125,000 people flocked to Liverpool for the Mathew Street Festival, ploughing millions of pounds into the city’s economy.

The event, organised by Liverpool Culture Company in conjunction with Mathew Street Festival directors, includes almost 100 bands on six outdoor stages over two days.

It also boasts a programme of music in indoor venues and the Mathew Street fringe festival, which highlights the best up-and-coming bands on the thriving Merseyside unsigned scene.

Liverpool Council leader Warren Bradley said: “The festival has got off to an excellent start. It’s great to see so many people coming into the city, and also that people who live here have come out to celebrate our rich musical heritage.

“We’ve been delighted to see so many families out enjoying the music.

“I saw three generations out together, which shows that the appeal of the festival is now broader than ever.

“It was hard to top last year’s festival – we had Capital of Culture status on our side – but, judging from the numbers out today, I think we have.

“It says a lot for the planning of the event that we have managed to avoid a culture hangover.

“We have more hotel capacity than ever, more restaurants than ever – the city can cater for more people, and as a result we have more people than ever flocking to enjoy it.

“We have events across the city, organised by different agencies working together. That’s the legacy of last year. We’ve shown that we can work together, and that while Liverpool may no longer be European Capital of Culture, thanks to its huge artistic output it will always be a cultural capital of Europe.”

Liverpool was in celebratory – if somewhat damp – mood as crowds of families flocked to enjoy Europe’s biggest free city centre music party.

From The Christians to The Merseycats, from tribute bands to unsigned bands, there was something for everyone.

Huge crowds thronged the streets despite the heavy rain, revelling in the free entertainment on offer.

Country and Western, Irish and American stages all featured for the first time at this year’s festival, addressing the influence the three types of music have had on Liverpool.

Bars, restaurants and clubs were brimming with revellers.

Over on the Derby Square Stage were great Fab Four tribute performances from American Beatle impersonators Apple Jam, The Repeatles from Sweden and The Swiss Beatles, les Sauterelles.

The Water Street Stage showcased the best in country, with fans hiding their soggy Stetsons under umbrellas as they danced to swinging sets from Raymond Froggatt, Albert Lee & Hogan’s Heroes and Johnny Cash tribute Ring of Fire.