The Campaign for the Arts said the arts were on a “downward curve everywhere” and urged councils to protect investment, while former MP Tristram Hunt warned the arts faced a “vicious cycle” if funding declined.

Jack Gamble, director of The Campaign for the Arts charity, said local authorities have been hit by rocketing costs in social care, for homelessness and for school transport.

“We do encounter the view that the arts are a bit of a luxury and ‘do you really need to care about the arts when there are schools and hospitals to care about’ but it shouldn’t be ‘either or’. We can have both,” Mr Gamble said.

Following the decision in Cannock, Mr Gamble said theatres and museums could be of long-term benefit to local economies and towards residents’ health and wellbeing.

“The arts have a positive role in lifelong, educational opportunities. All of that will be affected. Everybody will be worse off,” he said.

“I don’t envy councils having to take difficult decisions but I would urge them to protect investment.”