Huge cuts to the performing arts could have a devastating impact, stifle the creative sector and endanger Wales’ cultural identity, a committee heard.

Sharon Stone, co-director of Chapter Arts Centre, described pressures on the sector as incredibly difficult following the pandemic, with inflation soaring and a cost-of-living crisis.

She pointed to a 45 per cent increase in utility costs over the past two years coupled with a 'huge' 43 per cent cut in the latest round of Arts Council of Wales funding.

Ms Stone, who is also director of finance at the Cardiff arts centre, told the Senedd’s culture committee: “We’ve gone from close to £680,000 a year to £390,000 a year.”

She explained that the Arts Council provides around 18 per cent of Chapter’s income, adding: “We can’t pass that onto our audiences … we’ll price ourselves out of the market.”

Her co-director Hannah Firth told the committee some costs, such as for hiring spaces, have had to be passed on, putting pressure on the wider sector.

Louise Miles-Payne, director of Creu Cymru, which champions the performing arts, echoed concerns about the Arts Council’s latest investment review.

“It’s a whirlwind of things all happening at the same time,” she warned.

Naomi Chiffi, director of collaboration at National Theatre Wales (NTW), said the charity is in a “unique and inevitable” position of having lost all its Arts Council funding in the last review.

“Even before that things were difficult and … we can’t expect audiences to pick up the tab,” she added, cautioning that it is becoming unsustainable for the sector.

Ms Miles-Payne warned the theatre sector is already close to closures, with threats to Blackwood Miners’ Institute and Merthyr Tydfil’s Redhouse centre having shut.

Ms Chiffi said: “It’s really important to remember that arts isn’t a luxury, it’s not a means of entertainment – it can’t just become the privilege of the few, it’s a right for all of us….

“It’s such a vital part of the nation’s cultural identity.”

Labour’s Alun Davies asked to what extent the sector is in financial crisis due to austerity as opposed to failing to adapt well to changes in society.