THEATRE Royal chiefs have welcomed a four-year funding deal that will see them get a one-off grant, but lose annual support from City of York Council.

In the city's new budget, which was confirmed this week, the theatre will get capital investment of £770,000 but its annual subsidy will be scrapped, saving the council £124,000 next year.

The theatre's chief executive Liz Wilson said they welcomed the longer term deal, saying the capital money would help the theatre invest for the future, and be a benefit for York's people and its cultural scene.

She said: "York Theatre Royal believes that a lively, cultural city with ambition and imagination is part of the great story that York has to share with its residents and the rest of the world. We look forward to reopening York Theatre Royal in the Spring and welcoming the city back into this well-loved theatre."

The capital cash investment is a £90,000 increase on the previous four years, and the council and theatre say it will help manage revenue into the future.

Cllr Nigel Ayre, the council's executive member for culture, leisure and tourism said: “York Theatre Royal plays a key role in the city’s cultural offer. This funding agreement will strengthen York Theatre Royal’s sustainability for the future and will allow them to continue to stage ambitious productions for residents and visitors alike.”

In 2015 the council transferred the Theatre Royal building to York Conservation Trust for a nominal £1 sum, meaning the Trust can make significant additional investments into the building, supported by a further five year investment plan. The Trust is contributing more than £2 million to the current £6 million redevelopment at the York Theatre Royal.

The council also put in an extra £20,000 earlier this year to help get in-year investment from Arts Council England.

Even after the funding changes three councillors will still sit as observers on the theatre's board, and regular reports from Liz Wilson will go to council scrutiny committees. The agreement with the theatre will be reviewed during 2018.

The theatre is due to reopen on April 22 with a world-premiere new adaptation of Evelyn Waugh's Brideshead Revisited.