Wakefield Council has withdrawn £25,000 of annual cash support from the group in a bid to lower budget costs – but founders say they will be forced to close next week unless that decision is reversed.

Richard Dunn, chairman of the board of trustees, said shutting the centre – in School Road, Glass Houghton – would be a “tragedy”.

He added: “It would be a tragedy if we closed for the sake of what is a relatively small amount of money.

“We were given one day’s notice for this cut, so could not seek alternative income in time. We are grateful for the support of Wakefield Council over the years and urge them to throw us a lifeline by reconsidering.”

The nationally acclaimed centre, founded by local artists and writers in 1979, holds arts-based adult education classes and exhibitions.

It is one of three arts organisations in the district that have had their council funding cut – although leaders are still holding talks with the authority.

Three workers will lose their jobs if the centre closes.

Lesley Wilkinson, manager of core activities, said: “There is a week left to keep the centre open.

“We appreciate the council is suffering from financial difficulties and job cuts, but our closing means that all council supported arts organisations would be near Wakefield city centre.

“The council has given us £5,000 but we have no choice but to issue redundancy to staff and start winding the centre down.

“If we close the region will lose access to many talented people and years of experience, skills and support will go forever.”

The group – which has launched the work of many writers, artists, poets and performers – will reach its 30th birthday next year.

Featherstone television presenter and author Ian Clayton said: “Over the years Yorkshire Art Circus has helped many people to carve careers.

“I certainly would not be presenting television programmes if it hadn’t given me a start. I don't know where people will go now to access this kind of work.”

Lisa Dodd, service director for sport and culture at Wakefield Council, said: “We are aware that Yorkshire Art Circus has made a great contribution to local arts, especially in the Five Towns.

“We are in talks to try and find ways to support the centre so it can continue.

“The council has had to make some difficult budget decisions this year but we are doing our best to make sure we focus on what is most important to our citizens and communities.”