Theatre owners angered by Barbara Follett attack on their 'shameful' facilities

They accused the Government of betrayal over plans to improve crumbling theatres, as Mrs Follett's department refused funding to tackle the massive backlog of work that needs to be done.

Mrs Follett sparked the row at a conference organised by the Theatres Trust, attacking facilities as "truly shameful".

She said: "London theatres put on the best shows in the world - marvellous plays; actors; directors and staging. But sometimes the brilliant performances on stage are not matched by the facilities for the audience.

"A ludicrously inadequate supply of toilets, especially for women; seating installed in an age when theatre-goers were considerably shorter than they are today and overcrowded lobbies can take the shine off an evening's entertainment - however good it is."

But Richard Pulford, from the Society of London Theatre, which represents theatre owners and managers, said talks with the Government on solving the problem faltered because of "the baleful impact" of the Olympics.

"It's all very well for ministers to will the end when they have shown themselves unwilling to will the means. Particularly for smaller theatres, making sufficient profits to pay for substantial capital improvements is almost impossible. We would have hoped the Department for Culture, Media and Sport would be aware of that."

A Theatres Trust report five years ago identified the need for £250million of investment over 15 years to make repairs and improve toilet and bar facilities in theatres, nearly all of which are Victorian or Edwardian. Many are also listed buildings. Theatre owners say they can not afford the repairs and claim it is producers who make the big money from shows.

But the report failed to convince the Government or the London Development Agency that they should provide the cash to help.

Mr Pulford said many theatre owners introduced a levy on ticket prices towards capital improvements, but that it was not enough: "It's not producing huge sums of money and it will take a very long time to get £250million."

Mhora Samuel, from the Theatres Trust, said there was a good economic argument for supporting greater investment: "The Theatres Trust will be offering its support to Barbara Follett and the DCMS to look at ways in which the Government could help."

Some owners, notably Cameron Mackintosh, have put millions into improvements and Andrew Lloyd Webber's Really Useful Group is spending £1.5million on air-conditioning at the Theatre Royal Drury Lane, home to Oliver!, where audiences have walked out because of the heat.

But Nica Burns, whose company Nimax runs five theatres, said many had endured years of neglect. The Garrick, which she bought in 2005, has not been fully revamped since it was built in 1889. She has just ordered a report that estimated costs for cooling measures at £750,000. "That's an aspiration, but at the moment I'm sorting out the damp," she said.