The Mayor of London Boris Johnson to find a community-based organisation to run the event, after the 2012 World Pride parade was downgraded and several more Soho events axed owing to a shortfall in the organiser's budget.
Each summer the parade and festival attract hundreds of thousands of people from across the UK and from overseas. The Mayor is providing funding to secure the event's long-term future.
It is also waiving the fee to use Trafalgar Square and providing assistance from a Greater London Authority events officer, bringing total support to around £650,000.
Johnson said: "London's Pride celebrations are one of the biggest and most high-profile events in our city's cultural calendar. They are enormously popular and underpin London's status as one of the best cities in the world for LGBT people, who make an enormous contribution to the social and economic life of the capital. With a new partner, strongly rooted in the community, our ambition is to see a successful event that is sustainable in the longer term."
Speaking on behalf of the LLCP board, Michael Salter said: "We're delighted with the support we've already had for our bid from the community but the hard work starts now. We have five months to raise the funding required, finalise plans and make our vision a reality. We've already begun working with community groups and sponsors and now we are looking for motivated individuals to get involved and join the small army of volunteers that are essential to making Pride a roaring success.
The organisation’s status as a community interest company means any surplus funds raised can only be used to support the event in future years or donated to LGBT organisations.
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