Durham's Gala Theatre has lost £753,556 in the past financial year figures have revealed.

The Liberal Democrat-led city council came in for criticism earlier this month when it failed to publish the exact debts accrued at the theatre during the year 2003/4.

Its first year subsidies necessary to sustain the theatre exceeded £1m and the Liberal Democrats, who ousted the previous Labour regime at the town hall in the local elections of May last year, pledged to reduce the losses.

A statement issued by the council, last night, said the subsidy of £753,556 equated to an average of about £63,000 per month.

It compared this to a monthly average of £108,000 for the year 2002/3, claiming it has, therefore, reduced the subsidy by 42 per cent. The statement added that the first two months of the latest financial year saw subsidy of £54,000 required at the theatre, within the latest financial target set in the council's latest budget.

Council leader Sue Pitts said: "All friends of the Gala Theatre will welcome this news. It is encouraging. Even though we still have some way to go, this clearly shows that the city council's unshakeable belief and commitment will be justified."

The council has brought in consultants from Darlington's Civic Theatre to help to steer the Gala into a more successful era.

Durham's Labour MP, Gerry Steinberg, said: "If they think they are keeping it under control with subsidies of £54,000 per month then they are living in cloud cuckoo land."

Published: 15/06/2004