Darlington Civic Theatre and the Arts Centre have been given a stay of execution in a bid to keep them open permanently.

The theatre will remain open for another year while it is put on the market as a going concern.

The Arts Centre will continue to be subsidised on a reduced budget while alternative ways to run it are explored.

The proposals by Darlington Borough Council will initially reduce the number of expected redundancies by 115.

The Civic had been expected to close in the summer following the loss of subsidy. It will now be kept open until January 2012, partly for contractual reasons as a number of acts are already booked for the autumn and winter season.

The theatre will be put on the market either for sale or to lease as long as it remains a theatre.

The Arts Centre will remain open while talks continue with the Arts Council, production groups and Darlington for Culture, a body set up to save arts provision in Darlington.

The recommendations form part of the council’s latest budget announcement for the coming four years. The amount it must save has been amended from £22m to £20m, but a fundamental review of funding in two years may change that.

The authority’s share of the council tax bill will remain unaltered next year, which means Darlington Borough Council will receive a £1m Government grant. Proposals are to increase it by three per cent in each of the following three years.

Many earlier proposals remain unaltered, including a library service review, reducing subsidised bus services, arts and sporting events in the town, management restructure, staff pay freeze, closing toilets and cutting back services.

Changes will also keep bowling greens open for another year, defer a reduction in town centre management role and a school transport policy and involve seeking a new grant for cycle training.

Council leader Coun John Williams thanked those who had helped find ways of maintaining services, but said: “This is the most significant reduction in funding we have ever faced and most of the proposals remain as we set out in November.”

Conservative Coun Charles Johnson remained cautious about the difference in Government- announced figures and those from the council, but said: “I am very pleased that the Arts Centre and Civic Theatre have been reconsidered.”

Liberal Democrat leader Coun Martin Swainston said: “It is a relief there has been a stay of execution. We hope there can be additional funding from the private and public sector coming together to safeguard them. It is very welcome breathing space for both venues.”

The number of redundancies in the authority will now be 360, not 475 as first feared. The council is halfway through its 90-day consultation period.

A spokeswoman for Unison said: “Unison is encouraged by management’s and the council’s decision to remove some staff from the redundancy measures to allow more time to be given to see whether the Civic Theatre and Arts Centre can be sold as a going concern.”

The proposals will be debated at a special meeting of the cabinet on Tuesday at 5pm. The cabinet meets on February 22 before the full council meeting to approve the budget on March 3.

Darlington for Culture holds its next meeting on Thursday, at 7pm, in the Arts Centre.