A theatre's plea for a £2 million cash boost from the National Lottery has been snubbed - throwing a £3 million restoration plan into doubt.

Harrogate Theatre management, staff and supporters were reeling from the announcement after hopes had been high of getting the much-needed cash injection.

Almost five years ago the theatre faced closure with falling audiences. But now it is on a firm financial footing. Management and staff are said to be devastated that their plea to the Arts Council for the cash had been rejected.

The Oxford Street theatre has been earmarked for a major modernisation scheme costing more than £3 million.

The 100-year-old building was all set for a revamp with £2 million of Lottery cash kick-starting the project.

Plans had also been laid to raise more then £1 million locally. Theatre chairman Jerry Mass, who has been helping to spearhead revival of the theatre said: "We are so very disappointed. This is certainly a severe setback."

But when asked if the theatre could now face temporary closure Mr Mass said the he hesitated to respond because everyone connected with the theatre were still in shock at being rejected.

Theatre chiefs are planning to take up their rejection with the Yorkshire Arts Board and the Arts Council and "draw some conclusions from it all," added Mr Mass.

Updated: 10:24 Wednesday, June 13, 2001