The Drill Hall faces an uncertain future after Arts Council England confirmed it is to stop all of its £250,000 funding from April 2008.

It had be hoped that an appeal would be successful, with many high profile people supporting the campaign to reverse the council's plans to stop its funding for this year.

However the council confirmed its decision to The Drill Hall today.

In its letter dated 31 January 2008, the Arts Council notes “letters of support from the Mayor and from Camden Council."

The Council's letter also states: "There were concerns regarding the lack of similar facilities in central London and that the non-renewal of funding to Drill Hall would have a negative impact on the LGBT sector and central London."

“Regional council discussed the positive reputation the organisation had in the LGBT community.”

A fund raising campaign is being launched to replace this grant and keep The Drill Hall open.

“The Drill Hall is a unique building: the staff are determined that our important work, especially our education programme tackling homophobic bullying in schools, will survive," said Julie Parker, Artistic Director and Chief Executive.

“In an age where homophobia continues to run rife, The Drill Hall is a beacon for social cohesion and artistic excellence – not such a frequent combination."

“This funding cut will have a devastating impact on LGBT writers and performers."

“During the appeal, we received a tremendous amount of support from people who have enjoyed coming to The Drill Hall for over three decades."

“We are still assessing the full implications of this cut in our funding, but in short, it could mean after 30 years there will be no new LGBT work from The Drill Hall."

At the same time, the Times reported last weekend that the Drill Hall's sister organisation, the Manchester arts festival Queer Up North, was granted a reprieve.

Its also understood The Bush theatre in West London, National Student Drama Festival, the London Mozart Players, a chamber orchestra, and Anjali Dance, a London company for dancers with learning difficulties, are among other 194 organisations which also had their funding saved.

Aggrieved organisations, including the Drill Hall, will still be able to go through the council’s formal complaints procedure and then seek judicial review.

“While we accept the Arts Council’s right to introduce change, we do not think the process has been consistent, transparent or fair,” Jeremy Hunt, shadow culture secretary told The Times.

“We urgently need people's support and I would urge them to visit www.drillhall.co.uk/save for ways they can help to keep The Drill Hall open," added Parker.

In autumn 2007 the theatre on Chenies Street celebrated its 30th anniversary as the UK’s leading producer and presenter of lesbian, gay and queer performance.

The Drill Hall has also had a long association with the BBC and other radio and TV production companies. The building has been used to record popular shows for BBC Radio 4, such as The News Quiz and The Now Show.

Built in 1882 as a drill hall for the Bloomsbury Rifles, the venue is remembered and visited by older ex-soldiers from all over London. The Drill Hall is now run by Central London Arts.

Patrons of The Drill Hall are Matthew Bourne, Julian Clary, Patrick Gale, Jackie Kay and Miriam Margolyes.