MANAGERS at York Theatre Royal say there is no fear of closure despite missing out on the largest increase ever in public money to theatre in this country.

Executive Director Elizabeth Jones said she was "deeply disappointed" at not getting any additional money from this week's Arts Council's £25m handout.

But she said: "We are committed to keeping one of the most beautiful theatres in the country at the heart of its community."

Nationwide, 194 organisations have received extra money, including many in the Northern Arts region where funding was doubled, by £1.5m.

But she said that the situation did not put the Theatre Royal's future in jeopardy.

They would continue to work with Yorkshire Arts on a range of projects, which it is hoped they will support.

"We have, only this year, received two additional awards from them for audience development work," she said.

"And we are currently working on an exciting project to create an experimental studio space, partly funded from our own resources, which we hope Yorkshire Arts will support."

The theatre received grants of £297,728 from the City of York and £403,760 from Yorkshire Arts, plus smaller amounts from Hambleton District Council, Pocklington Town Council and Upper Poppleton Parish Council this financial year.