AN EAST Oxford theatre facing cuts of more than £68,000 is determined to keep its doors open despite the big financial setback.

Pegasus Theatre says it will be forced to cut its services for vulnerable and disadvantaged young people as Oxfordshire County Council prepares to axe its arts funding from 2018.

Artistic director and chief executive of the Magdalen Road theatre Jonathan Lloyd said staff fear young people in need could “disappear through the cracks” but will continue to reach out to as many as possible.

He added: “With that central plank of funding disappearing, that does pose serious challenges.

“We have to find a way of working that protects the work that we do with young people.

“There is not an immediate threat. We can look at ways we do things and we are determined we are going to be here and not close.”

The county council plans to withdraw its annual £92,000 of funding for arts and cultural groups from 2018/19 in a bid to save £69m.

The final decision is expected to be signed off on February 16 after the county council cabinet backed the cuts on Tuesday.

Pegasus Theatre is set to lose £68,266 of annual county council funding, which lets it work with thousands of young people who have “chaotic” lives or lack confidence and self-esteem.

Mr Lloyd said staff, who have been working with young people since 1962, will now prepare a long-term strategy, look at other funding and at how they can reduce services.

He said they have been inspired by the support they have received from families in the city.

It comes after residents were asked to take part in a consultation on the cuts, which ended in November and had 548 responses.

Mr Lloyd added: “To see the number of people who value the services we offer is heartening. People care and see that it has made a real difference to them. We just want to do the best for them.”

Pegasus, which needs £850,000 a year, has core funding from Oxford City Council and the Arts Council but must raise at least £250,000.

Last year the funding enabled the charity to work with almost 4,000 young people up to the age of 25 in arts-based projects, workshops and courses.

County council spokesman Paul Smith said its priority was services for the most vulnerable residents, including children at risk of abuse and neglect, as well as adults needing care help.

He added: “Should the arts grants option be taken we would not want to remove these grants in one go. We would do it over time so that the recipients have the chance to find alternative funding. Councillors and officers met with representatives in Pegasus in recent days to discuss the situation.”