Halifax theatre leaves National Portfolio following ACE funding withdrawal

An arts venue in Halifax that was awarded regular funding from Arts Council England (ACE) has had its public subsidy withdrawn following its closure earlier this year.

Square Chapel arts centre shut its doors in February, cancelling all events “until a decision is taken about the future of the venue”.

While the venue and its website remain inactive, ACE has confirmed that it has withdrawn its funding.

“We’re aware that Square Chapel has been facing financial challenges and, having released National Portfolio Organisation payments until the end of the 2024/25 financial year, we have withdrawn our funding following the organisation’s decision to close its doors,” an ACE spokesperson told the Halifax Courier.

ACE said it is still in contact with the organisation’s directors but added that grant recipients are “responsible for managing their own operations, including decisions about their future”.

“However, we are committed to working with Calderdale Council and partners in the town to ensure that audiences continue to have access to a range of cultural opportunities,” said the funding body.

Square Chapel received £159,000 a year from ACE but had its payments temporarily paused last year amid concerns that some performers who had played at the venue had not been paid.

Between 2019 and 2022, Calderdale Council provided Square Chapel with £70,000 per year. The authority has previously ruled out further support for the struggling theatre.

Previous struggles

Square Chapel was named a National Portfolio Organisation (NPO) in 2022, two years after falling into administration.

In a move supported by ACE and Calderdale Council, the venue was saved from closure in September 2020, when it was taken over by Arts at the Mill, an umbrella company for three Wigan organisations – The Old Courts, Wigan Pier and the Royal Court Theatre.

In October 2023, The Old Courts also had its NPO payments temporarily frozen after it lost around £1.2m in revenue due to structural damage to its concrete floor, which resulted in a temporary closure.

In its most recent financial statements submitted to Companies House, made up to 31 March 2024, Arts at the Mill opted not to deliver a copy of the profit and loss account but reported its shareholders’ funds – £1,062,787, up from £674,502 the year prior – as part of its net liabilities, indicating the company may have a negative equity position.

NPOs in the red

An investigation conducted last year by Arts Professional and MyCake, a financial benchmarking company, found that the arts organisations in the 2023-26 National Portfolio were collectively in the red by £63.1m in 2023.

The number of NPOs has dropped by six during the current portfolio.

At the start of the year, The Great Literary Agency announced plans to close at the end of March, while Derby-based dance company Déda entered liquidation in August 2024, and Studio 3 Arts, which was based in Barking, went into liquidation in December 2023.

Beacon Collaborative also left the 2023-26 portfolio, while Poet in the City closed as a separate charity and merged its activities with Apples & Snakes.

Wigmore Hall has announced that it plans to withdraw from the portfolio in April next year, after raising £10m from private donors, which it says will free it from the funder’s “onerous” requirements.