The Gay Harris Dancers are just one of the regular acts

The theatre's future is being questioned after Denbighshire Council said it could reduce the funding if provides in order to save money.

The local authority has warned it faces making "unpopular cuts" because most of its budget is being spent on trying to improve its failing education services.

A council spokeswoman said no decision had been made yet.

It's heartbreaking to think it could be lost Dance tutor Gay Harris

She confirmed reducing funding for the theatre was one of the options being considered by the council, which wants to keep down council tax rises.

She added: "It wouldn't be the closure, they [the council's cabinet] are talking about lowering funding for the Pavilion Theatre."

But local performing groups fear funding could be cut by up to �50,000 a year, which they say could make it impossible for the centre to function.

Rhyl councillor Sue Roberts, chair of the Rhyl and District Amateur Operatic Society, has already voiced her concern at possible cuts.

Gay Harris, who runs her own dance troupe which regular appears at the venue, said: "It would be disastrous for the town.

"We feel as though we are fighting a losing battle. If it goes, what will be left for the town?

"There are so many fantastic groups who perform there, and the children love it. It's heartbreaking to think it could be lost."

'Unpopular decisions'

Denbighshire Council plans to spend more than half of its budget rise in the coming year on dealing with its failing education services which were severely criticised by schools watchdog Estyn last year.

It has also said it faces making "difficult and unpopular decisions" following a "below average" funding settlement from the Welsh Assembly Government.

Of an additional spending budget of �1.75m for 2008-2009, at least �860,000 will be allocated to improving schools and education services.

As a result, the council is considering making cuts of �1m on social services spending, as well as reductions in tourism, leisure and culture.