DIRECTORS at the Arc Theatre face a bleak financial future as a £25,000 annual deficit is threatening to bring down the curtain.

One job at the Trowbridge theatre will be axed next week as bosses try to juggle a budget slashed by a fifth.

Problems erupted when cash-strapped Wiltshire College Trowbridge was forced to halve the annual grant of £50,000 donated to the neighbouring theatre over the past four years.

Theatre director Deryck Newland said he is confident the extra money can be found but vowed not to let debts compromise the theatre's artistic integrity.

Labelling it an "all or nothing" situation Mr Newland said: "I am not prepared to put staff through making something survive when it is not viable.

"We are already surviving on a very low staff base because of their commitment and dedication.

"The message to the local authorities is we believe we have something that is very good value. All small scale arts venues rely on subsidies.

"By the end of September I will be in a position where I will have to stop spending money or will have achieved the necessary funding to help us continue at the same sort of level."

Wiltshire County Council has agreed to an additional £6,000 annual subsidy but only if West Wiltshire District Council and Trowbridge Town Council follow suit.

Money to rehire the axed publicity officer post could then be gleaned through an Arts Council grant.

Responding to claims the theatre should concentrate on providing "popular" shows Mr Newland added: "If we are talking about Gilbert and Sullivan and Alan Ayckbourn they only tour professionally on a large scale because these shows are popular. There is a lack of understanding about the marketplace."

An extra £6,000 is needed from each of the three local authorities but the cash-strapped district council are already struggling with a derisory arts budget while the town council deferred the decision to a meeting on August 26.

District and town councillor Bob Brice said: "I can't see the district having an extra £6,000. If the money was available of course we would dish it out but it isn't."

The theatre puts on 130 shows every year with 200 young dramatists and dancers using the venue on a weekly basis. Children with special needs and amateur art groups are among other clubs who see the theatre.

The venue needs £130,000 a year to survive, with money coming from ticket sales, hiring fees, grants and subsidies.