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Creative Scotland has warned it may have to half the number of organisations it provides long-term funding for after losing more than 10% of its government budget.

The funding body’s Chief Executive Iain Munro told Scottish Parliament around 60 organisations could lose support, which could put up to 2,500 jobs at risk.

The cut to Creative Scotland’s budget means the funder will be forced to use some of its National Lottery reserves to fund arts organisations.

The Scotsman has reported Scottish Culture Secretary Angus Robertson signalled to these reserve when justifying the government’s decision to make the cuts, adding he insisted “the time is right” for reserves to be deployed when the government is faced with “difficult decisions”.

Trade union Bectu has said it is “dismayed” at the news and has called on the Scottish Government to identify additional funding to support the arts.

“It’s been clear for some time now that the industry is heading towards a funding crisis,” Bectu negotiations officer for Scotland Paul McManus said.

“We will continue to fully engage with Creative Scotland and the Scottish Government following this announcement. The government must stand by its commitment to the arts by putting its money where its mouth is and make clear its commitment to responsible employment practices.”