Ref. 29972-31THE future of Swindon Dance, the town's esteemed national dance agency, is up in the air after Tory plans to privatise it were last night put on hold.

Rumours have spread that if Swindon Dance stays under Swindon Council control, the Arts Council of England could withdraw £250,000 a year funding.

Swindon Council's Tory administration plans to turn the dance group into a charitable trust and cut it free from council control.

Labour says the Tories have no basis for doing this and are trying to "wash their hands" of the organisation.

Last night they succeeded in getting the Tories to take the plans back to the drawing board and nothing was decided.

Swindon Dance, based in the Town Hall Studios in Regent Circus, is one of only 10 national dance agencies in the UK and covers the southern region.

Its classes and performances of ballet, tap, contemporary and jazz steps reach up to 40,000 people of all ages each year, and many of its students go on to work with professional dance companies.

Under the Conservatives' plans, a shadow board would be created before the agency strikes out on its own.

The council will continue to give Swindon Dance £285,000 a year plus inflation for an initial period of three years, matching the funding commitment of Arts Council England, which currently gives £250,000 a year.

This would secure the studios' funding until March 2008. After that its future funding is unknown.

The Tories had based their plans for privatisation on suggestions that the Arts Council might withdraw funding if the dance agency kept its council links.

But Labour leader Kevin Small (Lab, Western) last night dismissed such suggestions as rumour.

He said: "There is no evidence to suggest that the Arts Council would withdraw if Swindon Dance remained a part of Swindon Council. It's like a rumour, there is nothing in writing."

As a charitable organisation Swindon Dance could save up to £10,000 a year on business rates.

But it could no longer reclaim VAT, which could cost up to £18,000 a year a potential net loss of £8,000 annually.

Labour has accused the Conservative administration of seeking to wash their hands of the agency.

Coun Small added: "The Tories are relying on a rush of external funding to replace existing council support.

"In trying to keep council services to a bare minimum, they are yet again lining up another key service for closure."

Coun Derique Montaut (Lab, Moredon), shadow lead member for cultural services and recreation, accused the Tories of privatising Swindon Dance for the sake of it.

"In cutting it adrift they are hoping they can wash their hands of it," he said.

"Swindon Dance is a highly successful story with accolades like we have never had before, and it should be kept under the control of the local authority."

But Conservative cabinet members say the move to charitable trust status will free up the 24-year-old agency to apply for extra funding from external sources.

Justin Tomlinson, lead member for cultural services and recreation, said. "The council is still very much actively involved in Swindon Dance and this will safeguard its long term funding.

"At the moment it has to rely on year-to-year council budgets and it doesn't know what it will get the next year. This way it can make long term plans."

Swindon Dance director Marie McCluskey attended last night's cabinet meeting.

She declined an invitation to speak by councillors.

No one at Swindon Dance was available to comment.

Emma-Kate Lidbury

Andy Tate