Lottery bosses have once again snubbed the Palace Theatre in Westcliff, it has been revealed.

The Arts Council refused an appeal for £250,000 to stage bigger and better quality productions at the London Road theatre.

The bid was originally rejected by East England Arts - which distributes cash on behalf of the National Lottery - but theatre bosses asked the Central Arts Council to review the decision. The news yesterday (Tuesday) has dashed hopes of both Southend Council and the Palace Theatre Trust.

It comes after two bids to revamp the Cliffs Pavilion - one for £12m and another for £5m - were also rejected for lottery funding, sparking accusations that north Essex receives the bulk of cash handouts.

Southend Council leader Charles Latham said he felt the council faced an uphill struggle to get cash for the Palace Theatre.

Mr Latham said: "We will never give up in our efforts to persuade East England Arts to properly fund the Palace Theatre. I begin to despair, however, when every time we apply and put forward a good case we come up against a brick wall."

Trust chairman Ian Downie said the situation was "very disappointing" but he added the trust would continue to try and look at every avenue of securing more funding to improve repertory work produced in-house by the New Palace Theatre Company.

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