The dispute began when Heiton couple Keith and Cate Ryan complained about George Formby songs performed by Roger Platfoot – also from Heiton – which, they argued, contained offensive and derogatory words such as "kaffir", "Zulu" and "chink".

Keith told TheSouthern: "At the time of the 40th anniversary of Enoch Powell's Rivers of Blood speech, we were shocked by the acceptance of racist songs being sung at the sessions.

"My wife and I have twice raised our objections to the singer, but on both occasions were told to 'folk off' (sic] in an aggressive manner. Our complaints to the owners also fell on deaf ears.

"There should be zero tolerance. We felt saddened that this racism happens in Kelso and is considered acceptable. What next? Songs about the disabled, gays or some other easy-to-target group?"

Watch and hear George Formby sing

However, Roger, who is an expert on George Formby's films and songs, and plays an original 1930s Gibson banjo-ukulele, yesterday defended his choice of songs insisting they had proved popular at the club: "They're certainly not racist. All the stuff I play has been widely published, is on record and is faithfully reproduced and a reflection of what was done at the time. The songs go down very well with others at the club."

Folk club chairman David Kilpatrick described the row as a disagreement between an "eccentric character" and a "politically conscious, New Age" couple, and said owners of the venue, The Cobbles Inn, had gone a long way to ensuring visitors felt welcome and at home.

"This all gives a wrong impression of the Kelso Folk Club Friday night session, which is probably the most inclusive, friendly and least racist gathering you could hope to drop in on," he commented.

"These classic songs from Formby's musical films are well received by visitors to the club, often requested and lead to calls of 'do another one'.

"They are not to everyone's taste, but the racist language was innocent, the songs sketching slightly risqué ethnic caricatures in a humorous and affectionate manner.

"If we ever have to ban non-PC songs, 200 years of repertoire, including music hall, Dixie minstrel and delta blues, would be decimated."

Cobbles Inn owner Gavin Meiklejohn added: "Personally, I don't find anything that goes on here offensive and I've spoken to many members of the Kelso Folk Club who agree with me. This is really just one hysterical couple over-reacting."