York Theatre Royal: £500,000 funding boost
A York theatre has received a £500,000 funding boost to support its work.
York Theatre Royal has been given access to a loan of up to £500,000 to help with its cash flow while it recovers tax relief and invests in the way it puts on productions.
Theatre Chief Executive Paul Crewes said they were grateful to City of York Council for the support to help them attract audiences and talent and work with world-class performers.
Coun Pete Kilbane, the council’s Labour culture spokesperson, said the theatre is an important asset for the city which enriches residents’ lives and supports local businesses and jobs.
It comes after the council’s executive agreed to give the 280-year-old theatre, in St Leonard’s Place, access to the £500,000 loan facility on Tuesday, November 3.
The council approved a letter of guarantee for the theatre allowing them to access up to £426,000 for two years to help provide assurances to auditors and grant providers.
It was extended in July last year to up to 2028.
Theatre trustees have since approached the council to increase the value of the letter of credit to £570,000.
Access to the separate loan facility approved on Tuesday comes amid delays in recouping theatre tax relief, with the support aiming to help its cash flow in the meantime.
It also comes as the theatre has moved production in-house which have seen up-front costs increase in the short-term ahead of expected future returns.
A council report stated officials were working to agree a suitable financial mechanism that would support the theatre and protect the authority’s interests.
Theatre Chief Executive Mr Crewes said they were grateful to the council for its support for its ambitious and essential work.
He added the loan facility would support them in continuing to provide a world-class cultural offer for residents and visitors.
The chief executive said: “In recent years the theatre has progressed to an ambitious in-house producing model, attracting talent and audiences from across the globe.
“We are also proud to be curating and presenting a dance programme of the highest quality, working with world class artists and companies.
“This producing and presenting model is developing the city’s reputation locally, nationally and internationally.”
Culture Executive Member Coun Kilbane said the council recognised the significant contribution the theatre makes to the city.
He added it put on a range of activities with people living in York, schools, charities and attracts a significant number of visitors.
The executive member said: “The council and York Theatre Royal have had a financial arrangement in place for a number of years that demonstrates our continuing commitment to supporting arts and culture in the city.
“A loan facility has been an available option for some time and does not represent a new funding commitment to the Theatre, nor will it incur any costs to the council.
“This demonstrates our continuing commitment to the work we are doing together.”
The theatre estimates that every £1 it spends generates £2.68 in economic and social returns for York and the wider region.
Additional economic activity generated in the region is estimated to be worth £6.25m along with £3.4m in health and wellbeing benefits.