AN MP has expressed fears for a city's flagship theatre - opened less than two years ago - which has accrued huge debts.

Gerry Steinberg, Labour MP for Durham, spoke out after it emerged the Gala Theatre's latest losses had run up to £445,733 from April to October - £157,530 more than the budget set by the previous council administration.

Mr Steinberg described October as, "a particularly disastrous month", with the theatre losing £82,000, £46,000 more than anticipated.

He was critical of the Liberal Democrat leadership of the city council, which took over the running of the controversial theatre after its election success in May.

The Lib Dems had accused their Labour predecessors of presiding over a "fiasco" in the theatre's first year.

Within weeks of it being officially opened by the Queen in May last year, the management company employed to run the theatre, The Entertainment Team, went bust with debts of £700,000.

The council took over the running of the theatre, and losses by the end of the first year were reportedly at £900,000.

Mr Steinberg said the Gala's fortunes had deteriorated further under the Lib Dems. "I am extremely apprehensive about the future of the theatre and fear we may lose a fantastic amenity for the people of Durham, not to mention possible job losses," he said.

Council leader Sue Pitts, who was unavailable to comment last night, has pledged that the Gala's latest financial figures will be discussed by the city council cabinet on Monday. But earlier in the week she accused Mr Steinberg of being "out of touch".

News of its financial strife came as internal inquiries revealed there was no evidence of "inappropriate use" of the theatre at a staff Halloween party on October 31.

Mr Steinberg also called for the Liberal Democrats to answer whether Durham City chief executive Colin Shearsmith, who resigned earlier this week, went willingly or was forced out.