AFTER fears about its future, the Alhambra Theatre in Dunfermline has been awarded £150,000 from Fife Council.

Councillors at the executive committee on Tuesday agreed to the one-year funding which fell short of what the venue had requested.

It will remain a proposal until the council decides its budget next month.

However, some councillors argued they shouldn't get any money at all.

Tim Brett, group leader of the Lib Dems, said: "We're facing a very serious financial situation and, as others have said, I'm not convinced the case for this funding or subsidy has been made."

He added: "Are we going to say to the people of Fife 'We still need to continue with closing 16 libraries, sorry, and by the way we're going to give the Alhambra £150,000'?

"I don't think the people of Fife will understand that and we're at risk of making a serious mistake."

However, the leader of the opposition, SNP councillor Brian Goodall, said: "You just need to be out and about on a show night in Dunfermline to realise how much extra activity there is in the pubs, clubs and restaurants.

"If the Alhambra was to close, we don't have specific figures but it would have an economic impact far greater than the sum of money we're being asked for today."

Fellow SNP councillor Neale Hanvey added that "people will lose businesses and jobs" if the theatre was to close.

The report to the council had warned that the theatre could shut if funding was not granted.

The Alhambra Theatre Trust (ATT) played this down but admitted that without extra funding "the current business model may not be sustainable in the long term".

It had asked the council for £150,000 a year for three years and a guarantee against losses of up to £50,000 a year to support the costs of booking major West End shows.

The proposals included taking over the running of the Carnegie Hall, including a 25 year lease of the East Port venue.

Tory councillor Dave Dempsey said: "The report said the Alhambra may close and the next day they said they won't. If they don't need the money to stay afloat, why are we proposing to give them some?"

And party colleague Dorothea Morrison added: "We as a council are probably in the worst financial situation we've ever been in and there's no money put aside for this. For that reason, regrettably I have to say no."

ATT receives no public money and said theatres in Edinburgh and Perth had, since the Alhambra opened in 2008, received over £5m each from their local councils while Carnegie Hall had received almost £3m.

It said only one other Scottish theatre – the Pavilion in Glasgow – received no public subsidy and highlighted a 2013 study that showed an "economic impact of close to £40m to the local community" since the theatre had opened.

Independent councillor Andrew Rodger said it was a "small price to pay" to bring the theatres together and help make them more successful.

Deputy council leader Lesley Laird put forward an alternative which, instead of the £600,000 over three years the Alhambra wanted, proposed one year funding of £150,000.

She said it was "premature" to go for a three year deal.

Cllr Laird explained: "We recognise the cultural significance and wider economic benefits that the Alhambra brings to Dunfermline and its town centre businesses.

"It’s important that a stronger working relationship between both of the town’s theatres is established.

"This proposal will seek to examine what the best, and most efficient, way for the Alhambra and Carnegie Hall to continue offering good quality programmes to their customers will look like in the future.

“It is also essential to recognise the financial reality of where we are. With a budget challenge of £38m this year, a budget gap of over £90m in the next three years, on top of a £50m equal pay claim to fund, we need to find a way of navigating these challenges."

Councillors voted 10-9 and the money will be paid out in three £50,000 payments for the core costs of operating the Alhambra.

One officer and two councillors will be appointed to the theatre's board and, instead of a takeover, discussions will continue about a "closer operating relationship" and a co-ordinated approach between the two theatres.

The motion added that the council will have to be satisfied about the Alhambra's financial position before releasing any funds and that due diligence will be carried out by officers from finance and audit.