THE future of Abergavenny's Borough Theatre has been secured for the next three years after grant funding was confirmed until 2015 last week by Monmouthshire's cabinet members.

As from April 1, however, a charitable trust is set to take over the day-to-day operation of the theatre after a transfer agreement was agreed by cabinet members.

Cabinet members agreed to grant the trust £153,820 a year - a figure which allows for additional costs that have been identified following a re-evaluation of the employment needs of the theatre.

The grant has been secured for the next three years of the agreement - and beyond if it can be proved that the grant funding is still required.

Councillor Giles Howard said, "This report ties up many of the loose ends surrounding the future of the Borough Theatre. It's been an extraordinarily long drawn out process but the Borough Theatre has a good reputation and attracts companies from the West End stage to perform there and we needed to safeguard its future.

"While the theatre establishes itself over the coming years we as an authority also need to continue to support it."

Cabinet members also agreed that should there be any unforeseen significant cost that could not be managed by the trust in each of the first three years, this cost would be funded from the authority's reserves.

Councillor Phil Morris said: "We've wanted the theatre to manage on its own for some time now and I think in the long run it's the right thing to do as a local authority and I offer them my full support."

Councillor Liz Hacket Pain said: "The Borough Theatre is a great asset in Monmouthshire and acts as a very good regional theatre. I realised early on that the theatre would be on a better financial footing if the day-to-day operation was handed over to a trust."

Councillor Jim Higginson said: "What pleases me is that we are providing a financial cushion over the next three years to ensure the theatre's success."

But Councillor Phyl Hobson called for clarification on what would happen after the transfer of the theatre management to volunteers, and asked: "I want to know what happens after the three years are up, is that the end of our support?"

Councillor Howard responded, "One thing is for sure, there is not going to be a cliff edge in 2015. The three-year period enables the trust to become independent of us.

"It is being set free in a civic sense, but will still be attached at the end of three years if they still need our financial support."

Council Officer Dave Jones explained: "The current grant is for the operation of the theatre only so that the management trust can be self supporting. The authority will be looking after much of the fabric of the building itself by undertaking maintenance repairs as needed. The theatre's trust is the best means of safeguarding the future of the theatre itself."

Members were told that the trust will be paying a nominal rent for the lease, which had originally not been considered as best value for the premises but was later allowed under the General Disposal Consent Order (Wales) 2003 which allows for the disposal of a building by way of a long lease.

This procedure did not need the consent of Welsh Government if the purpose of granting the lease is in the interests of the economic, social and environmental well-being of the whole or any part of the authority's area.

Mr Jones pointed out that members needed to be aware that the granting of such a lease was a necessary part of the trust's funding package to secure the long term future of the theatre, which will improve the well-being of residents and businesses of, and visitors to, Monmouthshire by supporting a vibrant theatre.

Councillor Geoff Burrows added, "The Borough Theatre is a superb entertainment venue and with its future being in the hands of trustees, long may its success continue."

Council leader Peter Fox concluded: "Sometimes we are forget what we have in this authority. Abergavenny's Borough Theatre is one of the jewels in Monmouthshire's crown. The theatre is one of the best of its type in the country.

"By being independent from the authority, the trust will benefit from its ability to access external grants together with business rates relief."

• During the autumn of 2011 and Spring 2012 a survey was undertaken at the theatre and visitors said they most valued the facility for its auditorium, the warmth of its welcome, its intimacy and the fact that it's at the heart of the community.