WORCESTER Arts Workshop is facing a huge financial blow as the Arts Council proposes to stop its £25,000 annual grant from April this year.

The city-based arts organisation would lose 20 per cent of its annual funding if the Arts Council goes ahead and cuts cash to about 200 organisations across the country.

John Denton, arts workshop manager for the past 15 years, said he received a letter about the proposals just before Christmas - giving him just two weeks to appeal. Responses were due in on Monday, January 14.

"It has been done in a complete blanket of secrecy with no warning," he said. "We could not believe it. We were stunned. It came after our Arts Council annual review, which was fine. We have gone from strength to strength."

He said the reasons for the Art Council's decision was because of the limited geographical area the workshop serves and that its work has a relatively low impact.

But Mr Denton said the Worcester Arts Workshop, in Sansome Street, was involved in events across the county and beyond.

"We are now going through the appeals process and we are receiving very strong support," he said. "If the worst happens and they cut the funds it will mean we will not be able to do as much as we do now. It may well mean job reductions and we may have to restructure to operate more on a project by project basis. It is going to be difficult."

Spokesman for the Arts Council Simi Obra said: "The arts change and grow and our funding must reflect and encourage that, which is why we review our funded organisations on a regular basis."

The regional council of the Arts Council will meet on Wednesday, January 23, to make a decision about funding cuts.