Church Stretton Town Council says it now faces 'hefty' costs to replace an external fire escape at the Silvester Horne Institute and has started the process of getting quotes to carry out the work.
A council spokesperson said: "Following a review of health and safety for the Silvester Horne Institute, it has been necessary to restrict numbers in the main hall to 140 on close seating events to allow for acceptable escape routes for all visitors.
"Unfortunately the external fire escape to the building has been condemned."
The council says it is now unable to allow any bookings to be taken, or access to be provided, for either the venue's balcony or the council chamber at the current time.
The spokesperson added: "The costs to replace the staircase are likely to be hefty, and the council is working on getting the best quotes for this work.
"We do apologise for the inconvenience this may cause, particularly for those ticketed events where close seating is required.
"But trust you understand that safety always has to come first."