Two police armed response units and a dog team swooped on the Isle of Sheppey this afternoon following reports that a person with a firearm had been spotted in the street.

Officers raced to West Street, Blue Town, Sheerness, just after 1pm and searched flats in the former Royal Fountain Hotel.

Police spokesman Andy Saunders confirmed: "Armed officers attended the scene and two people have been arrested in connection with the incident.

"An initial search of the property has been carried out but no weapon has been found."

Shoppers at the packed Whelan's concrete garden gnome and ornament factory were unaware of the drama unfolding just yards away. And regulars at the nearby Red Lion pub carried on watching football and rugby on the pub's giant TV screens.

But the operation disrupted celebrations for the Hurkett family which was staging a reunion at the Criterion Theatre which is part of the Blue Town Heritage Centre. More than 40 had gathered from all over Britain and Australia to take part.

Ian Hurkett, who runs the centre with his wife Jenny, said: "Police closed down the road with their patrol cars so any of our guests had to drive away the wrong way down a one-way street. We counted two armed response units, a dog unit and six police cars. But the police wouldn't tell us what was going on."

Guests spoke of two men who had been laying carpets and were surprised by police. One said: "We heard that a police marksman wearing a balaclava helmet swung open the door of their van and told them to get out of there. It must have been very frightening."

The operation comes just 10 days after armed police shut down Richmond Street in Sheerness and arrested a man in connection with a burglary in Warden on June 11 when two Second World War Browning machine guns and ammunition were stolen.

Both weapons had been permanently prevented from being fired and none of the ammunition was live. The man was later released without charge. But two other men were arrested on the same day.