Basildon's Towngate Theatre could be bulldozed or sold off to developers, council leader Malcolm Buckley admitted today.

The theatre, which opened in 1988 and closed ten years later, is costing taxpayers £1million a year on mortgage repayments and maintenance.

A new draft cultural strategy for the district has now come up with a range of "radical" options which could see the end of the Towngate, which suffered from poor design and relatively small size.

Tory council leader Malcolm Buckley admitted this could mean anything from the Towngate being demolished and replaced with a more suitable venue to the town centre site being sold off to developers.

Mr Buckley said: "Unfortunately, the cost of running the theatre was dramatically larger than a figure the community could afford, while the theatre itself is too small to be run commercially.

"We all recognise that there is demand for a performing arts facility in Basildon. The question is whether or not the theatre is viable or the right venue to be that facility."

Mr Buckley said the council was committed to providing a community theatre for Basildon, but admitted this could mean selling the Towngate to developers.

He added: "That is certainly one option, because the Towngate does not serve the community in the way it was intended.

"It could be that the current theatre would be viable as an art gallery or a museum. I would rule nothing in and nothing out."

Mr Buckley said the theatre's small size meant ticket prices would be prohibitively high.

He added: "I remember we tried to book the Supremes without Diana Ross, and were quoted £15,000. That would mean tickets costing up to £30 each, and I don't think people would pay that."

Basildon Council Labour leader Nigel Smith, however, accused the ruling Conservatives of failing to look after one the town's most important cultural landmarks.

Mr Smith claimed the council could keep the Towngate open permanently at a cost of just £2-a-year to every resident.

He said: "I am not happy with this at all. It is unfortunate that the Towngate is not financially viable, but that situation is only because of decisions made by this council.

"The Towngate belongs to and was paid for by the people of Basildon and they ought to be able to use it."