DISTRICT leaders are standing by a failing East Dorset arts centre despite calls for it to be closed if business does not pick up.

The Verwood Hub opened in March 2007 after a multi-million investment from East Dorset District Council .

But less than two years later, the district authority has been forced to pump £125,000 of grant aid into the facility, in addition to its annual £30,000 contribution to running costs.

Colehill councillor Janet Dover said: “I feel really concerned about the ongoing viability of this centre. This is a tax on everybody in East Dorset.”

Cllr Pat Hymers, the member for Wimborne Minster, said she was fed up with having “a sword of Damocles” held over her head.

“Why shouldn’t this money be a loan? If they can't pay the loan back then something is seriously wrong and it needs to close,” she said.

“If they can’t produce the goods and make it work, why shouldn’t it close?”

But Cllr Spencer Flower, leader of the council, told the Daily Echo: “It’s a fledgling enterprise, and like many new businesses it has suffered partly from cash flow problems.”

A major review by a team of financial experts headed by the council’s chief executive, Alan Breakwell, had identified previous failings, he added.

Verwood Town Council backs the Hub to the tune of £30,000 a year. Town mayor Cllr Lucy Clarke thanked the district council for its backing, and pledged the continued support of the town council.

“It’s very important to the people of Verwood. The Hub was fairly approved by a parish poll. It was what the people wanted and where they wanted it,” said Cllr Clarke.

Shoppers at the Verwood branch of Morrisons supermarket flagged failures with the Hub’s programme and promotion.

Teacher Alan Pounds, 60, said the centre needed to broaden its appeal to young people if it was to compete with attractions in Bournemouth and Poole.

Tina Jackson, a land surveyor and mum of one, said the latest films should be shown to avoid losing custom to families content to watch older releases on DVD.

Aircraft engineer John Pearson said he had often learned of events at the Hub after they had finished, adding that better promotion would swell the centre’s coffers.