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Thanks for your question. It is strange that they gave no reason and at first instance the venue would seem to be in breach of contract and would be liable in damages for your losses. However do you have any written terms and conditions with the venue? If so please let me see them.
I presume they had previously accepted you application under clause 3 of the contract. That being the case, in order to cancel the booking they would have to rely on this clause:46. Our right to cancel bookingsWe will have the right to cancel any booking at any time if: -a) Exceptional circumstances of public importance or public safety arise, or if the interests of thepublic justify cancellation;b) If there is a risk that damage might be caused to the Centre if the booking is not cancelled;c) If the event for which the Centre is hired is likely to lead to any disorder, any offensive public acts, or any acts contrary to sobriety, decency or the law.d) If there is a need to close the Centre for refurbishment or redevelopment.In the event of cancellation under (d), we will give you as much notice as reasonably possible and where appropriate give advice and assistance to find an alternative venue. In all circumstances we will not be liable to compensate you for any losses incurred as a result of our cancellation.
So for them just to say they did not see it fit for that kind of event to be held at the venue is insufficient reason. They would have to be far more specific and be able to justify something under the contract. If they cannot you have a prima facie case for claiming your losses as damages. I hope that helps. Please leave a positive rating so that I am credited for my time.