In the past �100m worth of lottery tickets were sold every week

The Arts Council of Wales, which funds these schemes through money it receives from the National Lottery, will have to stop giving out grants which in turn will lead to many being shut down.

The council used to receive �18m from the lottery but this year the money it receives is likely to be down to �12m.

The decline in lottery revenue means the council will now concentrate its efforts on small scale and community projects.

In its heyday �100m worth of lottery tickets were sold every week in the UK.

But a decline in revenues means organisations like the Arts Council of Wales are being affected.

What we need....is to have a very clear view of what our priorities are Peter Tyndall, Arts Council of Wales

The council has already handed out the money available to it this year.

It has mainly been given to community groups, and smaller festivals.

But this means that no other applications for aid can be considered in 2003.

Peter Tyndall, the arts council's chief executive said: "It's our view that what we need with the money reducing is to have a very clear view of what our priorities are, and those are the smaller grants for community arts organisations and festivals."