SWINDON Arts is being disbanded next month, putting at risk the town's famous annual jazz festival.

Also in jeopardy will be the popular Think Art Festival.

News of the shock decision was given to Swindon Council's ruling cabinet last night by Coun Maurice Fanning (Lab, Gorse Hill and Pinehurst).

Coun Fanning, the council's representative on Swindon Arts, said: "It gives me no comfort in making this report.

"But Swindon Arts will be wind-up at the end of January, a redundant and moribund body.

"Swindon Arts was the first of its kind in the country 13 years ago and was applauded throughout the nation for its pioneering concept.

"I'm proud of what we've done, engaging the public in the arts."

Also giving evidence to the cabinet, Coun Steve Allsopp (Lab, Parks) said: "We're on the edge of a real cultural lift-off here, but unfortunately Swindon Arts is not the body to see it through.

"The way forward has to be through a link between the arts and entrepreneurial regeneration of the town centre."

Swindon Arts is simply no longer financially viable, the cabinet was told. It was necessary for it to be wound-up while it was able to settle its financial commitments.

Kevin Small (Western), the labour group leader, expressed his concern that there would be no jazz festival even next year. "We are in danger of shooting ourselves in the foot," he feared. "So many people come to Swindon from all over for that festival. It's something that really helps to put Swindon on the international map."

But council leader Mike Bawden (Con, old Town and Lawns) thought that by promising £140,000 of taxpayers' money to perpetuate the jazz festival just for a year would be "sending out the wrong message".

He added: "We mustn't falsely raise people's expectations.

"People would rightly say education and social services are desperately in need of a cash injection and yet here you are throwing all that money at a non-essential provision."

The cabinet did accept, however, that Swindon was on the brink of a cultural renaissance, an opportunity which the council had to embrace.

Accordingly, the cabinet voted to look at ways of establishing a cultural development partnership for Swindon.

Members agreed that the current grant funding to Swindon Arts should be ring-fenced to act as a financial start-up for the development of the partnership.

An officer's report to the cabinet concluded: "It has been speculated that money available from the local business sector would be well in excess of what would be needed to cover running costs.

"The partnership will bring the arts and business together in Swindon.''

A task group was set up in October as a response to the concerns of various council members.

Swindon Arts was recommended for investigation by the Services to the Community Commission because of its financial difficulties, it was reported.

Swindon Arts has been a beneficiary of an annual grant from the Lifelong Learning (Cultural Services) division of the council.

Towards the end of last summer, Swindon Arts approached the council for further funding because it was cash-strapped.

The council came up with an extra £5,000, which was matched by the New Swindon company. This was sufficient cash to see it through until November.

The new Swindon Company had agreed to stump up its contribution on the understanding that there was a focused working party to help deliver a new plan and business strategy for Swindon Arts by September.

This was not achieved.

Consequently, at the end of October, the council agreed to keep Swindon Arts afloat financially until the end of January.

Since then, Swindon Arts has come to the conclusion that it could not possibly continue after January.

Two people will lose their jobs.

Council officers will be reporting back to the cabinet on the feasibility of the proposals.

Michael Litchfield