One of those small arts organisations that pushes the boundaries and regularly takes risks is Stan’s Cafe, a theatre company based in Birmingham.

Established in 1991, it has become one of Britain’s major contemporary theatre exports, with an international reputation. Stan’s Cafe offers performance-based art that is often challenging and experimental. Entire dramas have been improvised, while others have incorporated computer technology.

James Yarker, artistic director of Stan’s Cafe said: “It’s going to be take some time to work out what the Government cuts mean for us as a group. But it’s obviously a disappointing, worrying time.

"Approximately one third of our income is government money, but I think we are in a fairly strong position. We are involved in lots of international touring which generates income. Being independent, we can be flexible, innovative and light on our feet.

"So hopefully that means we will be able to absorb most of the blows.

“Saying that, these are still very scary times. The government seems to have this idea that there is all this inefficiency in the arts. That a bit of belt-tightening will solve all the problems from lack of funding.

"But that’s just daft. Also there’s the idea that arts organisations should now be going round looking to get more sponsorship. But the truth is that most groups have already been doing that.”

Mr Yarker says that he has decided to take a pay cut himself.

However, he is mostly concerned about Stan’s Cafe no longer being able to be a truly innovative company.

“One of our most successful projects, Of All The People In All The World, involved using a lot of rice,” he explains. “£700 from the Arts Council enabled us to buy a tonne of rice.

“The work that we made with the rice has been successful all over the world and has made hundred of thousands of pounds. Without the money from the Arts Council we couldn’t have got started on it.”

Mr Yarker believes the cuts in arts funding haven’t only been introduced because of economic necessity.

“There is an ideologic drive behind this,” he said. “Labour’s track record on the arts is fantastically better than the Tories.

"The arts weren’t done any favours under Margaret Thatcher, they certainly didn’t flourish under John Major and now we have this from the Cameron government. It’s disappointing though not entirely unexpected.”