Battersea Arts Centre faces closure because of a cut in funding.

Wandsworth council, which supports the leading fringe theatre, plans to withdraw its annual grant of £370,000, citing cuts in its own funding from the Government.

The venue, which launched the careers of Paul Merton and Dawn French and Jennifer Saunders, also receives £493,000 a year from the Arts Council.

Wandsworth says it is a regional resource, not borough-specific, and should therefore be wholly funded by the Arts Council.

The borough, whose grant pays for rent and maintenance as well as providing £100,000 in cash, has already announced plans to close Wandsworth Museum.

Supporters of the centre say it is being made the scapegoat for a £5 million gap in the Tory-controlled council's budget, caused by the Government's lower-than expected funding package.

The venue, celebrating its 25th anniversary, attracts 220,000 visitors a year.

Battersea Labour MP Martin Linton accused the council of "killing" the centre. He said: "If they withdraw all their support, the centre will close."

Sarah Weir, executive director of Arts Council London, said: "We are shocked and dismayed by Wandsworth's decision. We will be working closely with BAC and the council to reach an agreement that will secure a future."