£500k loan facility for theatre granted by council

York Theatre Royal has been granted access to a £500,000 loan from the city council to support its future productions.

The arrangement would help the 280-year-old theatre while it waited for tax relief payments and continued its move to producing more shows in-house, according to City of York Council.

A theatre spokesperson said the change had increased up-front short term costs, but was expected to generate returns in the future.

Councillor Pete Kilbane, the Labour culture spokesperson, said the loan facility had been "an available option for some time" and did not represent "a new funding commitment to the theatre".

The council previously approved a letter of guarantee for the theatre allowing it to access up to £426,000 for two years to help provide assurances to auditors and grant providers. Last July, that was extended 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, according to the Local Democracy Reporting Service.

Theatre chief executive Paul Crewes said staff were grateful to the council for its support.

He added the loan facility would help them in continuing to provide a world-class cultural offer for residents and visitors.

Kilbane, culture executive member, said the authority recognised the significant contribution the theatre made to the city.

He added it put on a range of activities with people living in York, schools and charities and attracted a significant number of visitors.

"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," Kilbane said.

"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."

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.

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