ALTERNATIVE funding could be found for the closure-threatened Scottish Youth Theatre, according to the boss of Scotland’s arts agency.

Janet Archer, chief executive of Creative Scotland, which has come under fire for axing the 41-year-old company’s regular funding, said it was “possible” the £200,000 shortfall could be made up from funding applications for individual projects.

Her announcement came as a campaign to save the theatre intensified. Leaders of the Glasgow-based company are to meet the Scottish Government this week to discuss whether it could be given national status in order to qualify for direct government funding.

The youth theatre works with young people and children from all over Scotland and has helped launch the career of international stars such as Gerard Butler and Karen Gillan.

A call has also been made for the business community to support a crowd-funding drive to keep the company going. It announced last week that it would have to fold in July as a result of Creative Scotland’s decision.

John McGlynn, the founder of Scottish Capital, condemned the arts quango’s stance as an “absolute disgrace”.

“Scottish Youth Theatre is a national institution which does so much to stand kids in good stead, and it’s great for the community,” said McGlynn. “Money is always tight but my suggestion is that it receives a mixture of emergency government support and private support.

“I am more than happy to assist and help get private sector support to save it for the next year. Maybe by then the funding powers of Creative Scotland will have gone back to the Scottish Government.”

David Watt, executive director of Institute of Directors Scotland, agreed that the theatre played an important role in helping children.

“Any opportunity to upskill young people and prepare them for the fast-changing world of work and life in the 21st century should be welcomed,” he said.

Entrepreneur Alan Harty has already stepped in with funding to allow the youth theatre’s National Ensemble to tour in the summer.

“It’s easy to look at this organisation as a ‘nice to have’, but I would argue that it is a necessity,” said Harty, who runs a company that helps people with financial problems.

“These are young kids ranging from 13 upwards and the immediate thing you notice is their confidence is just bubbling out of them.”

First Minister Nicola Sturgeon has said she sympathises with calls to save the company but the Scottish Government could not tell Creative Scotland who to fund.

However, during a grilling on the controversy on yesterday’s BBC’s Sunday Politics Scotland programme, Archer defended the funding decision, saying that all awards were based on merit.

She said the youth theatre was one of more than180 organisations that had applied for three-year “regular funding” from a £33 million pot and Creative Scotland could not fund them all.

Archer expressed disappointment that the youth theatre had announced it was to close, adding that discussions were still ongoing between the company and Creative Scotland.

Project funding for up to two years was available, she said, and this amounted to £100,000 per project or £150,000 with special permission. Organisations could apply for more than one programme.

“Not many, but some organisations have managed to work project funding in a way that helps them to be more flexible to respond to opportunities as they arise,” she said.

Asked if this could make up the company’s £200,000 shortfall, Archer added: “That’s possible. My staff will always say it’s under huge pressure, so we’re only able to fund one in three of the applications that come in.

“There’s a possibility that Scottish Youth Theatre could come into open project funding and be successful.”