The Royal Shakespeare Company is to see its funding cut by £1million as the Arts Council announced a swathe of budget cuts to arts organisations across the West Midlands.

The RSC, which is about to unveil its £112.8million transformation project with the re-opening of two theatres, will see its £15million budget cut for 2010/2011.

Birmingham Royal Ballet will see its £8 million budget cut by £563,000 and warned of challenging times ahead.

The City of Birmingham Symphony Orchestra (CBSO) will suffer cuts of £160,710 from its £2.3million budget in the coming year.

Ros Robins, West Midlands director of Arts Council England, said: “These funding cuts will seriously affect our West Midlands budget, and they are made worse by the fact that about 80 per cent have to be introduced in the first two years.”

She added: “Organisations like the Royal Shakespeare Company will get a reduction of just over one million pounds, and the Birmingham Royal Ballet will receive over half a million pounds less in this first year.”

Stephen Maddock, chief executive of the CBSO, said the cuts will mean a very difficult time for the orchestra and other arts organisations in the region.

Mr Maddock said: “The CBSO is already lean, professionally managed and entrepreneurial.

“So significant funding cuts can not simply be managed by efficiency savings or increased philanthropy, as suggested by the government. At least in the medium term.

“To address this, we are undertaking a rigorous strategic review as we plan our work from 2011 onwards, and we know that we will need to make tough decisions through this process.

"Nonetheless, as we celebrate our 90th birthday next month, our priority is to sustain the artistic success of the organisation and ensure that people of all ages and backgrounds across the region are still able to engage with music of the very highest quality.”

Other major arts organisations to be affected include Birmingham’s Rep and Coventry’s Belgrade Theatre. The Rep will lose £135, 138 in funding, while the Belgrade will have £72, 561 taken from its budget.

The Ikon Gallery will lose £74, 404. The Midlands Arts Centre (MAC), which re-opened this year after a £15m refurbishment, will have £54,000 slashed off its £789,000 budget.

Full budget cuts:

ORGANISATION - Current Budget - Amount to be cut

Ace Dance And Music  - £204,820  - £14,133
Arena  - £52,472  - £3,621
Arts Alive  - £62,774  - £4,331
Audiences Central  - £414,768  - £28,619
B Arts  - £71,796  - £4,954
Belgrade Theatre  - £1,051,602  - £72,561
Big Brum  - £112,574  - £7,768
Bilston Craft Gallery  - £66,452  - £4,585
Birmingham City University  - £104,946  - £7,241
Birmingham Contemporary Music Group:  - £341,366  - £23,554
Birmingham Jazz  - £75,036  - £5,177
Birmingham Opera Company  - £349,899  - £24,143
Birmingham Rep Theatre  - £1,958,523  - £135,138
Birmingham Royal Ballet  - £8,161,785  - £563,163
Black Country Touring  - £110,279  - £7,609
Black Voices Limited  - £46,654  - £3,219
Blue Eyed Soul Dance Company  - £83,323  - £5,749
Chitraleka Dance Company  - £74,577  - £5,146
City Of Birmingham Symphony Orchestra 2,329,126  - £160,710
Coller and Tie  - £76,232  - £5,260
Contemporary Glass Society  - £52,472  - £3,621
Craftspace  - £211,683  - £14,606
Dance Touring Consortium Limited  - £524,728  - £36,206
Dancefest  - £73,461  - £5,069
DanceXchange  - £518,042  - £35,745
Dash  - £109,366  - £7,546
Designer Maker West Midlands  - £40,875  - £2,820
Ex Cathedra  - £50,920  - £3,513
Fierce! Festival Limited  - £83,057  - £5,731
Foursight Theatre Company  - £174,153  - £12,017
Geese Theatre Company  - £29,886  - £2,062
Hereford Photography Festival  - £57,618  - £3,976
Ikon Gallery  - £1,078,313  - £74,404
Ixia  - £127,416  - £8,792
Ledbury Poetry Festival  - £56,670  - £3,910
Live & Local Ltd  - £86,882  - £5,995
Ludlow Assembly Rooms  - £66,033  - £4,556
Midlands Arts Centre (MAC) - £789,352  - £54,465
Made  - £34,989  - £2,414
Malvern Theatres Trust Ltd  - £59,775  - £4,124
Motionhouse Dance Theatre  - £276,385  - £19,071
Multistory  - £238,299  - £16,443
New Art Gallery Walsall  - £941,362  - £64,954
New Vic Theatre  - £995,733  - £68,706
Open Theatre Company  - £108,645  - £7,497
Pentabus Theatre  - £200,056  - £13,804
Punch  - £195,121  - £13,463
Rhubarb Rhubarb  - £116,510  - £8,039
Rideout (Creative Arts For Rehabilitation) - £30,602  - £2,112
Royal Shakespeare Company  - £15,930,392  - £1,099,197
SAMPAD  - £260,472  - £17,973
Shindig  - £47,819  - £3,299
Sound It Out Community Music  - £113,788  - £7,851
Stan’s Cafe  - £108,159  - £7,463
Talking Birds Theatre Company Ltd  - £71,795  - £4,954
The Courtyard Centre for the Arts  - £227,319  - £15,685
The Drum  - £633,237  - £43,693
Theatre Absolute  - £61,208  - £4,223
Tindal Street Press  - £52,472  - £3,621
Vivid  - £132,319  - £9,130
Warwick Arts Centre  - £525,540  - £36,262
Welsh National Opera Limited  - £6,761,196  - £466,523
Wolverhampton Arts and Museums Service  - £69,979  - £4,829
Writers In Prison Network Ltd  - £165,153  - £11,396