By Darren Waters BBC News Online entertainment staff

The Arts Council England says it has boosted arts events attendance

More than 15 million people attended at least two arts events in 2003, up 800,000 on 2001, according to the survey.

A council spokesman said: "There is concern that these achievements could be undermined with a bad financial settlement from the government."

The council is a government arts body to promote, fund and develop the arts.

Its current funding deal will see it receive �412m in 2005/6.

We are not asking for a lot, just stability Arts Council spokesman

But the it is worried it may lose out when it learns details of its new funding settlement in the next few months.

The new settlement will take it up to 2008, the year Liverpool hosts the City of Culture festival.

The Arts Council England is concerned the government will increase funding to the heritage and museum sector at the expense of the arts.

"It should not be either or," said the spokesman. "We are not asking for a lot, just stability."

He added: "We want the money to make sure that we make Liverpool 2008 a world class festival."

Exhibitions remain a key element of the arts

The Arts Council England said its attendance figures showed it had exceeded the government's target for attracting new audiences by 60%.

"This is substantial growth. A real sea change," said the spokesman.

"The government has brought the arts out of a bad period, bringing confidence and helping the arts reach out to new people.

"We do not want to go back to boom and bust, feast or famine."

Since 1988/9 the Arts Council has seen its funding rise substantially - from �189m to �412m a year by the end of 2005/6.

'Great achievement'

"It's been really impressive and is one of the great achievements of this government," said the council.

The figures do not apply to Wales, Scotland or Northern Ireland, which have their own government arts bodies.

The two biggest areas of growth in attendances in England have been in theatre and new artist exhibitions.

The increase in audiences was not unique to London, said the spokesman.