The theatre still faces a tough future

This scale of new funding should ensure the debt-ridden venue can re-open in 2004.

The announcement comes nearly three months after the theatre announced it was closing indefinitely because of mounting debts approaching �500,000 pounds.

But 63 permanent jobs at the theatre will be lost as part of a recovery plan.

Redundancy payments

The �1.3 million pounds of funding from Arts Council England will enable the theatre to implement its recovery plan, and allow it to re-open.

But the plan also requires the theatre to reduce its operating costs dramatically.

This means the loss of 63 permanent jobs.

Until now, the 76 staff at the theatre have been on fully paid special leave.

The Haymarket's board says most will now be offered general redundancy payments, counselling, and help with finding new jobs.