asked the Chancellor of the Exchequer whether he will make a statement on the financial assistance he will give to provincial theatres.

Yes, Sir. Subject to the approval of Parliament, I propose to make provision in next year's grant-in-aid to the Arts Council for an additional sum of £150,000 to provide further Government assistance to provincial theatres.

While expressing what I know will be general appreciation of that action, may I ask the Chancellor whether he is prepared to consider sympathetically applications from local authorities who want to acquire theatres which are perhaps threatened by site developers?

I will consider that suggestion. Perhaps the hon. Gentleman will communicate with me about it.

Will the Arts Council be completely free to allocate this money as it thinks fit?

Speaking without notice, I think it is. I think it is within the discretion of the Arts Council, we having decided on the amount, to deal with its application.