A flagship theatre is losing almost half a million pounds each year, according to its latest figures.

The Orchard Theatre in Dartford, which is heavily subsidised by the local council, is thought to have made a loss of £483,660 in the past financial year and councillors warn times could get even tougher as belts are tightened in the national credit crunch.

Dartford council plugs the venue’s gap each year, but revealed earlier this month that it is having to make budget cuts to make up for a £1 million shortfall in government funding.

The theatre’s deficit, which includes estimated figures for February and March this year, is up by almost 10 per cent on the same figure for the previous year, when it lost £446,510.

Cllr Anthony Martin, deputy leader of the council, warned times could get even tougher: “In the current economic climate, going to theatres is normally the first thing people rein in.

“I think it’s going to be a difficult year for the Orchard.”

However, revenue from productions and bar sales is expected to be up by almost nine per cent on last year’s total, to £515,010, but the theatre’s overheads are approaching the £1 million mark.

Councillors also applauded news the theatre’s costs – £939,960 – are expected to mark an underspend of £58,000, but half of this was down to staff vacancies.

This year’s pantomime, Snow White and the Seven Dwarfs, took £157,599 at the box office, the report explains, but one third of tickets for the five-week show were not sold.

Referring to the increased revenue, Cllr Terry Smith said: “I’m pleased there’s an improvement in the situation. This is not your little local theatre any more – it’s something to be reckoned with.

“Bums on seats are important and we want to try to encourage that.”