The future of a Mid Wales arts organisation was hanging in the balance today after the failure of an appeal to try to prevent more than £220,000 of funding from being cut.

Theatr Powys was placed in jeopardy earlier this year when Arts Council Wales announced it would no longer be providing funding for the drama centre.

The cuts will come into effect from next April as part of a wave of Government cuts across the UK.

Powys County Council appealed against the decision but today it said this had failed, placing the future of the organisation which also includes a touring theatre company and is based in Llandrindod Wells, in further doubt.

And the council could also have to pay back more than £500,000 to the National Lottery if the centre does close as an arts venture.

Arts Council Wales currently provides nearly half of the funding for the drama company and the county council today said the decision to cut funding and the failure of the appeal had placed it in a difficult position.

Councillor Gwyn Gwillim, the county’s board member for leisure and recreation, said the ACW provided 48 per cent of the group’s annual £457,810 budget.

He said: “It is clear that the council’s annual budget allocation of £227,320 will not be able to support the retention of a full-time permanent company.

“It will be necessary at least to substantially reduce the scale and scope of activity currently provided and careful consideration would need to be given as to whether any aspect of the company’s remit remains viable without ACW support.”

He said the council would have to consider the future of the organisation.

“The council could also be liable to repay all or some of the £534,900 lottery grant it received towards its future depending on what happens to the centre,” he added.

He said the council would be looking to reach a decision on Theatr Powys by November and would be doing all it could to keep it running.

Councillor Mike Hodges said: “I’m very disappointed. Theatr Powys has been around for 38 years and has served tens of thousands of children.”

By Anwen Evans