The Playhouse has previously had funding problems

A progress report from the city council's Community Commission highlights a lack of commitment to working with amateur theatre groups.

It said it was considering looking at a more robust financial agreement.

The theatre has until the budget next March to resolve the situation and managers said it was working with the council to meet its obligations.

Many amateur groups have complained that if they cannot use the Playhouse they cannot afford to perform.

Staff problems

The theatre has struggled with financial problems in the past but recent results have been encouraging.

City council's Labour cabinet member for culture Alan Graves said: "The Playhouse has had its problems in the past and it is getting itself back into its place in the community.

"I think they are working towards that and all they need is a little more time."

A spokesman for the theatre said: "We are working closely with Derby City Council on the action plans outlined in our funding agreement.