Managers at Newcastle’s Theatre Royal have called for a government rethink on arts funding to help the venue survive and thrive.

The 125-year-old theatre, which runs as a not-for-profit charity, currently gets no direct government or Arts Council funding and earlier this year missed out on a grant.

Bosses said within the next decade they would need help to carry out £20m of modernisation works to the Grade I listed building.

The government said it was helping with grants and tax breaks while Arts Council England said the theatre had benefited from support for touring productions.

Theatre Royal’s chief executive Marianne Locatori said the current funding model made it hard for the venue to win support.

The building opened in 1901 and is regarded as an architectural masterpiece, but Locatori said that came with complications.

“It’s a privilege to be custodians of this beautiful building, but it has its challenges,” she said, adding: “It wasn’t built for audiences’ needs today.

“There’s no lift access. Environmental sustainability is a problem, and we are still working with kit that was originally installed in the 1980s.

“Our building will require upwards of £15m to £20m of capital work over the next five to 10 years in order to make it fit for purpose for now and the future.”

The theatre was among those who missed out on a share of the government’s £96m Creative Futures Fund in April, but it has now joined with four similar venues from across England to lobby the government.

The members of the Regional Independent Theatres Alliance said they were not looking for subsidies for performances, but needed investment in their buildings.

They said they were distinct from the venues which did currently get subsidies, but also from those, such as the Sunderland Empire and Stockton Globe, which were owned by profit-making companies.

The theatres said their importance to economic and cultural life was not recognised, leading to them being overlooked.

Locatori added: “It’s important the funding streams that come from government or the Arts Council are available and make sense for our model.

“As a charity, we make an impact in Newcastle and the region culturally, socially and economically. We are delighted to do that, but we will need some financial intervention occasionally to help us maintain that and grow.”

The theatre has won the support of the Newcastle Central and West Labour MP Chi Onwurah.

She said: “The Theatre Royal is part of our culture. It’s a great northern icon, and makes a huge contribution to the city. I will be working with them to see how we can best make the case for support.”

Another Newcastle theatre has faced similar challenges, but has had better luck.

The Tyne Theatre and Opera House is also run as a charitable trust and has a Grade I listed Victorian building. A government report put its repairs backlog at £15m in 2024.

But it has now received a £500,000 Heritage Lottery Fund grant and will partly use the money to make the case for an even bigger multi-million pound grant next year.

If that happens, there are plans for a complete refurbishment and an additional 300-seat community theatre space.

Chief executive Jonathan Higgins said he was delighted but it took a lot of work by himself and the volunteers from the theatre’s board.

It had also missed out on the same Creative Futures Fund the Theatre Royal failed to get.

“We listened to feedback and spent a lot of time soul-searching and getting it right” Higgins said.

He added: “But there are plenty of venues smaller than this who may be thinking how on earth do we tackle the forms, or employ the consultants who can advise us?

“Independent heritage and charitably-run venues that don’t have the backing of a local authority or a big group operator do need thinking about.

“That’s where there might be a vacuum at the moment. I think if the public want them to survive, there is a case for subsidy or funding.”

The government said it recognised the importance of independent theatres and the Creative Futures Fund, which was now open for new bids, would put £425m into 300 venues.

A spokesperson for the Department of Culture Media and Sport also said it had secured permanent tax reliefs for theatres.

A spokesperson for Arts Council England said it was pleased the Regional Independent Theatre Alliance was raising the profile of venues.

It said it had put money into support for touring productions which had come to the Theatre Royal this year.

It also said it has invested almost £40m in North East theatres in the last six years, including a £3m Culture Recovery Grant awarded to the Theatre Royal in 2020.