A leading arts centre is to close next year because of funding cuts.

The Gardner Arts Centre, in Brighton, has announced the spring 2007 season will be its last.

Deborah Grubb, chairwoman of the board, explained the building was leased from the University of Sussex and needed about £14 million of improvements.

She said the Arts Council and Brighton and Hove City Council had decided to concentrate funding on city centre venues, which had impacted on the Gardner's programme and income.

Last month, Brighton and Hove City Council withdrew its annual £30,000 grant in favour of other city centre arts groups.

On Wednesday, the Arts Council also decided to stop its funding next July.

Ms Grubb said: "These circumstances leave the board with no option but closure.

"This is a very difficult decision for an organisation which over the years has so consistently delivered programmes of the highest standard but we have to accept our work depends on ongoing levels of public funding which we will no longer have.

"It is better to take the decision now and close while we can still be proud of what we are achieving than to struggle on hoping for the best.

"To struggle on would, in our view, inevitably lead to a messy, unplanned closure, which is not something we want to contemplate for an organisation whose work is respected and admired, and which has always conducted its business affairs with absolute professionalism."

Situated at the University of Sussex's Falmer site, the Gardner was one of the first university campus arts centres in the country.

It opened in 1969 and occupies a Grade II listed building designed by Sir Basil Spence.

Sue Webster, the Gardner's director, said: "While we are obviously bitterly disappointed at the actions that have led to this decision, I support the board's view it is a step which has to be taken while we are still presenting work that maintains the high standards that have brought the Gardner a national reputation for excellence.

"All of the staff are committed to making sure our spring 2007 season is a hugely successful finale, celebrating our many achievements."

Alasdair Smith, vice-chancellor of the University of Sussex, said it would try to preserve the listed building.

A group is being set up to review how the building could be used in the future.

What do you think about The Gardner Arts Centre closing? Are you upset about losing the venue?

Should the University of Sussex stump up the cash for the improvements? What should the building be used for in the future?

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