Thousands of travellers have sparked a second day of chaos after descending on a historic market town in England's smallest county.

Around 1,500 gypsies have flocked to the Rutland Showground in Oakham in England's East Midlands for a mass Pentecostal Christian event, called the festival of Light and Life. But over the weekend residents reported mayhem in the quaint town - with drag racing, shop looting and antisocial behaviour forcing some local businesses to close.

Today (Mon) residents told how they had spent a second day locked down in their own homes as they were too terrified to leave.

Schools even advised children not to walk alone for their own safety after the town became "over-run" by travellers causing "absolute carnage."

A nearby McDonald’s remained closed this morning with police stood at the entrance following reports youths terrorised staff and diners over the weekend. One group of teenagers were seen running amok and jumping on car bonnets on the car park of a nearby GP garage and Aldi supermarket, which has stayed open. Local businessman Carl Ford, 55, said most smaller firms were forced to close their doors and residents were avoiding the town due to "fears for their safety."