THE Swan Theatre is set to receive £58,680 for each of the next three years from city council coffers to keep going.

It is the biggest cash grant any arts group in Worcester will receive from the authority and will rise in line with inflation each year.

The money is not any increase on last year's grant but has been warmly welcomed by theatre bosses - who said it was delighted with the funding.

The theatre is one of 26 'good-cause' groups set to receive three-year deals from the city council.

Chris Jaeger, head of Huntington Arts - which runs the Swan Theatre - said: "We are delighted to have a three-year funding agreement confirmed with the council for the Swan Theatre.

"We will continue to raise the rest of the money needed to keep the venue running."

City council leaders said the money would give the Swan Theatre financial security until 2009.

Cabinet member for tourism and regeneration Coun Francis Lankester said: "What we are saying here is that for three years, there is guaranteed funding for them.

"All the awards will be linked to inflation. There really is a good deal of security there.

"I think it's worth saying that of all the money we intend to give to community groups over the next three years, around half of it will go to the arts.

"We are very pleased to be committing this money. It's a step forward for local organisations."

In total, a quarter of a million has been earmarked for community groups in Worcester between now and 2009. All the groups either provide services seen as important to the city or contribute to the arts scene.

Coun Lankester said the council has kept £3,000 in case any other community groups make a request for money.

"People might ask - if we are committed to three-year deals, will any new organisations that come along get funding from us?

"The answer is mainly no, but we have kept £3,000 for groups that need extra funding to help them too."

Other big beneficiaries include Worcester Arts Workshop and the Citizens Advice Bureau - which will receive £25,290 and £21,770 each year respectively.