Loss fears put theatre at risk

The venue, which has a 427-seat theatre, will have a predicted income of £262,710 set against expenditure of £671,710. It will bring the taxpayers' subsidy for the facility to more than £2 millon over five years.

The recession has impacted on the centre's profitability – the Express & Star revealed on Monday that audiences were down eight per cent in the first six months of 2009 compared to the same period last year – although deficits have remained reasonably consistent since 2005.

The figures are revealed in a report to Cannock Chase Council's scrutiny committee, which meets on Monday.

Cannock Chase Council leader Neil Stanley said it was important to continue to subsidise the arts as long as the money could be found to do so but warned future Government cuts to local authority budgets could put that provision under threat.

He said: "We are always trying to reduce the deficit but the fact is that theatres run by councils and even those that are not have to be subsidised.

"You have to make a value judgment about subsidising leisure and the arts, supporting amateur dramatics and youth theatre.

"We will continue to do so for as long as we can but if Government does instigate the huge financial cuts being rumoured that will get more and more difficult."

The Prince of Wales Centre, Cannock's ageing multi-storey car park and the market hall are set to be demolished and replaced with a brand new retail complex.

Cabinet member for culture Mick Grocott said: "The deficit is around what we expected it to be. Of course, with the recession, audiences are down."

The subsidy for 2005-06 was £434,061; 2006-07 £411,802; 2007-08 £358,458; and 2008-09 £415,614.