Nottingham Playhouse may lose all of its £94,000 funding from Nottinghamshire County Council, which has to make £154m worth of savings by 2016.
The theatre has asked the authority to reconsider because the grant makes a “massive” difference to Nottingham Playhouse and is the equivalent of about five jobs.
The County Council said government cuts meant 800 jobs could go and services would be cut over the next three years.
Stephanie Sirr, the Playhouse’s chief executive, said £94,000, “doesn’t actually buy very many services. It doesn't make a huge difference to the County Council but it makes a massive difference to Nottingham Playhouse.”
A statement on the Playhouse’s web site says the “100% cut proposal has come without warning, at the end of another year when we have met all the criteria set down by Nottinghamshire County Council in the funding agreement to which the Council previously committed for the period until April 2015.
“We are sympathetic to the funding climate in which these cuts are being proposed, and we have never expected to be immune from savings—indeed, we have already absorbed several cuts to our funding in recent years.
“However, the total removal of Nottinghamshire County Council’s support would be a major blow and puts at risk work that directly benefits county residents, potentially damaging the work we do with education, leisure and tourism partners across Nottinghamshire, as well as our matched funding from other sources.”
Screenwriter William Ivory, whose work includes BBC1 dramas Truckers and A Thing Called Love, said for the first time in his life he felt “ashamed” to come from Nottinghamshire.
He tweeted, “For 20 years I've tried to show Notts off to the world: an artistic heartland to come film in. Maybe not.”
The Playhouse says it has been “overwhelmed” by the amount of support it has achieved since the council announced the proposed cut in funding.
Nottinghamshire residents have until 17 January to have their say on the planned cuts which can be posted on the council’s Facebook page or on Twitter @NottsCC #nottsbudget.
The Council says all responses will be considered and a final decision will be made on 27 February.