COUNCIL chiefs have refused to renew a £21,000 grant to Altrincham Garrick Theatre.

Hundreds of people signed a petition calling on the council to reverse the funding cut.

The theatre claims the loss of the annual grant could have a major impact on its community activities.

But the ruling Tory group was expected to rubberstamp the decision at the budget meeting last night.

And council leader Susan Williams insisted the decision was in line with their aim of using the borough’s limited resources effectively.

They had switched the grant to the Old Trafford Credit Union, providing it with £50,000 over two years. This enables the credit union to apply for matching funding that could boost its coffers by £100,000.

She said: “This is not a cutback as every year it is a one year only grant. It is a grant we are no longer giving them.

“The Garrick has a lot of money in reserves.

“Redirecting our grant to the Old Trafford Credit union is in our view a better use of money at this time.

“We feel the grant is better going to the credit union to ensure vulnerable people are not affected by unscrupulous loan sharks.”

Geoff Noar, the Garrick’s treasurer and company secretary, said: “I am extremely disappointed and surprised.

“I believe that if there had been a free vote we would have received our grant.”

He said that although the theatre has reserves of £350,000, this did not reduce the need for the grant.

Around £300,000 from the reserves is already earmarked for maintaining the buidling over the next few years, and was not for day to day expenses.

He added the loss of the grant will have an impact as “we can’t operate at a loss”.