A MARSDEN theatre company faces an uncertain future after losing regular funding from Arts Council England.

Mikron Theatre, based in Peel Street, was formed in 1972 and stages shows in pubs, clubs and village halls to draw in audiences who do not usually attend the theatre.

It has been funded regularly by the Arts Council for several years.

However, this year's grant of £10,600 will be the last regular cash the company receives from the Arts Council.

Other groups across the UK have lost regular funding.

Most of them were receiving less than £20,000 a year from the Arts Council, which is responsible for distributing Government cash to arts organisations.

The Arts Council says the cuts have been made because the Government set a tight budget for the arts in 2004.

In total, £49.8m was given to the Arts Council to support Yorkshire arts until 2008.

Arts Council spokes- woman, Tamsin Curror, said: "We have had to make some hard choices. However, we will still be investing in Mikron in a number of different ways.

"We have provided support for Mikron at a low level and it will be more appropriately supported through grants for the arts."

Approved projects were guaranteed three years of funding if organisations met conditions and passed annual reviews.

Mike Lucas, artistic director for Mikron, said: "The certainty of having regular funding guaranteed every year is not there now. Obviously we are disappointed and the implications could be great.

"However, we don't fully know at the moment exactly how it will affect us. We are meeting with the Arts Council to discuss the implications."

Arts Council England's Yorkshire executive director Andy Carver said getting a better deal from the Government in the 2006 spending review was vital.