A Guildford theatre faces a "deeply demoralising" cut to its council grant.
Guildford Borough Council plans to gradually cut funding to the Yvonne Arnaud Theatre over the next three years.
Its annual grant of £310,220 will be cut by £37,000 in April and reduced further year on year, reaching £200,000 by 2024/25.
The theatre’s financial deficit will increase to £364,000 as a result, Director and Chief Executive Joanna Read says.
The council pointed towards recent Cultural Recovery Fund grants - money the theatre spent to pay wages and bills during its closures - to demonstrate the theatre's financial health.
The decision comes as Guildford bids for city status, an ambition the theatre believes is difficult without investment in culture.
“The theatre has just come through the worst period of operation in its history,” Read said.
“To receive this cut now, this lack of support, at such a critical time, is deeply demoralising.”