Theatres, museums and leisure centres in historically left behind areas are facing an ‘existential threat’ from the cost-of-living crisis, MPs warn.

A new report from the Digital, Culture, Media and Sport Select (DCMS) committee has warned that the Government needs to tackle ‘geographical funding imbalances’ for arts and culture if it is to level up the UK.

The report highlighted the threat the increase in the cost of living poses to cultural initiatives across the country and said that the Government should ‘urgently bring forward targeted support’, such as through VAT or business rate relief, to cultural, sporting and media organisations.

It warned that without such support there would be ‘long-term scarring’ of those already hit hard by COVID-19.

DCMS committee chair Julian Knight MP said: ‘Local museums, galleries and theatres have a huge role to play in regenerating high streets and town centres away from the big cities, but they run up against pervasive and persistent barriers to their success.

‘With spiralling energy bills exacerbating the scars inflicted by the pandemic, the Government must come forward with targeted support to ensure local organisations are not hit by a wave of closures at a time when art and culture is more important than ever in providing people with an escape from the harsh realities of the cost-of-living crisis.’

The committee’s report also proposed a new model of funding to ensure grassroots organisations do not miss out in areas where there are national cultural institutions, which often receive the most significant levels of public cash.

Mr Knight continued: ‘In the longer term, a new model of funding is needed which stops cash for culture being hoovered up by all the big players and instead recognises the importance of the grassroots and opening up world-class exhibitions and performances to new regional audiences. People should be put at the centre of efforts to level up the country through culture.

‘The Government’s renewed focus on skills and vocational education must include support for industry-backed schools, training and apprenticeships. This will both help to tackle the chronic skills shortage inflicting the sector and provide a ladder of opportunity for people across the country.’ Responding to the report, Cllr Gerald Vernon-Jackson, chair of the LGA’s Culture, Tourism and Sport Board, said: ‘This report highlights the variable and unequal nature of funding for cultural investment and the need to address this if we are to realise the vision outlined in the Levelling Up White Paper.

‘We are pleased to see the report recognise the need for sustainable local funding which should be reflected in adequate funding for local government, and echo the recognition of the role of arts, culture and creative businesses in reviving the high street.

‘Investment in more public libraries is also crucial and we’re pleased to see this recommendation. The Government should support the development of a network of hubs providing cultural spaces, workspaces and free, fast internet access in places most in need of levelling up in order to modernise existing library service provision.’