There has been some progress in a better direction in the last 24 hours.
See the latest statement from Sidmouth Folk Festival on their Facebook page:

A huge thank you to the Sidmouth Folk Festival community – especially the ceilidh dancers and social dancers, musicians, volunteers, artists and young people for all of your comments, interest and promises of help expressed over the last few days. Last night – representatives of all these groups met with some of the Festival team to talk through the issues that have arisen around the Bulverton dance floor. We really appreciate everyone joining us at very short notice.

“Buoyed by your enthusiasm and promises of help, the production team has gone back to look at other alternatives. We are hopeful that in the next few days we’ll be able to share some very good news indeed. It may not be a perfect solution for this year, and will need your help – but will also give us a collective eye on finding a sustainable way forward for next year and beyond.

Watch this space – we will have an update in the next few days when we’ll be poised and ready to take you up on your generous offers of support (including financial help) through a special funding project to get our LNE ceilidhs back in place.

In the meantime, please do continue to come back to us with your ideas, enthusiasm and offers of further help.”