TWO arts organisations have been devastated by a massive funding blow.

The Arts Council England yesterday revealed it would axe its grants to Blackburn-based Action Factory and Mid-Pennine Arts, of Burnley, from 2012.

But four other groups were told their funding was secured until at least 2015, although with some reductions in budgets.

Community arts group Action Factory, which works in schools and health trusts and has been funded by the Arts Council for 30 years, will lose its £130,000-a-year grant from next April.

Its only other grant funding is £8,000 from Blackburn with Darwen Council, with some charitable donations on top.

Founder and boss Julian Dunn said: “This is certainly a significant blow for us.

“We are an organisation that works on arts in the community but the Arts Council does not see that as a priority.”

Action Factory will now look at funding alternatives.

Public art organisation Mid-Pennine Arts was also dealt a blow.

Its bid for £200,000-a-year, to help make up a £450,000 turnover, was rejected.

Creative director Nick Hunt said: “We were shocked and disappointed to have our funding cut completely.

“We know it is tough times but we didn’t expect a total cut.”

However, other groups were relieved by the Arts Council’s decisions, prompted by a 30 per cent cut in its budget for 2012-15.

Burnley-based young people’s group Curious Minds will be handed £4.2million over three years to act as the North West’s only ‘bridge organisation’ to help people into the arts.

Waterfoot-based Horse and Bamboo Theatre Company saw an 11 per cent reduction over three years to £129,000 by 2015.

Boss Helen Jackson said: “We are very relieved.”

Burnley Youth Theatre, which was singled out for praise by the council, will see its funding rise 9.5 per cent to £66,125 a year by 2015.

And theatre company Spot On Lancashire, of Blackburn, will get £40,000 a year until 2015, down slightly from £46,000 last year, after bidding with a Cheshire organisation.

Director Sue Robinson said: “We are very pleased. It is recognition for what we do.”