The Wyeside Arts Centre in Builth Wells may be forced to close in September because of financial difficulties, just one year after it was last saved by an emergency cash handout.
The centre’s survival is uncertain again because, with an indication they will only receive standstill funding for the next financial year from Powys County Council and the Arts Council of Wales, they will be left with a substantial shortfall in their budget.
The centre usually receives £37,000 annually from Powys County Council and £65,000 from the Arts Council of Wales.
The Wyeside, which is home to one of the UK’s oldest cinemas, faced the threat of closure last March because of a £50,000 funding gap but Powys County Council managed to find £37,000 to rescue it. It was made clear at the time that the extra funding was for one year only.
Wyeside’s artistic director Guy Roderick said the venue may have to close as soon as September due to the current financial difficulties.
The trustees are concerned that finding extra funding this time may be more difficult because of the demands on private supporters and on public funding bodies.
Chairman of the trustees, Julian Gibson-Watt, said: “The Wyeside trustees have received indications that the Arts Council of Wales and Powys County Council, Wyeside’s two main public funders, will continue to provide standstill funding next year, and this is appreciated. We also believe that the important and generous donations from the Friends of Wyeside and other private supporters will continue.
“However, there remains a very substantial shortfall in funding for the next year after budgeting for these sources of funding and support.
“Over the course of the last 15 months, the trustees and the Wyeside Management Team have considered a number of ways of reducing expenditure consistent with health and safety. They have even considered closing Wyeside for most of the week and closing the cinema entirely.
“None of the alternatives, when analysed, have so far produced a method of operation which significantly reduces expenditure without losing public or funding support.”
Mr Gibson-Watt said the Arts Council was currently conducting an investment review of revenue funding to organisations such as Wyeside and Wyeside had submitted a business plan as required by that review.
It includes statements from many supporters of the Wyeside, but the results of the review will not be known until June at the earliest and will not effect the Arts Council’s funding for 2010/2011.
A meeting will be held in March with the Arts Council, the county council and Wyeside, when all aspects will be considered.
Builth Wells county councillor Avril York said: “I am very concerned about Wyeside’s future but we are working hard with all our funders to find long-term solutions to the problems.”