The boss of a theatre that could be left with a £25,000 black hole in its finances has spoken of the devastating impacts of Rachel Reeves' budget.

The charity-run Sheringham Little Theatre says it will face the difficulty of a “double-whammy” of changes to National Insurance employer contributions and the rise in the National Minimum Wage, which is due to rise from £11.44 to £12.21 per hour.

Debbie Thompson, theatre director, said: "I feel really let down by the budget.

"The double whammy of National insurance contribution and minimum wage increase has created a hole which a community organisation like ours will struggle to fill. 

"To say we need to raise funds just to keep the door open is tough.

"These increases put us under huge pressure and it would be devastating if we had to reduce the services we offer to younger and older people of our community. 

"The opportunities we provide young people are vital to their development and career paths. 

"It seems unfair when we know how important arts activities are in isolated rural communities that we should be hit by this.

READ MORE: Suranne Jones announces Sheringham theatre competition

Debbie Thompson next to Surrane Jones, who recently announced a playwriting competition to help the theatreDebbie Thompson (left) next to theatre president Surrane Jones (Image: Richard Baston)READ MORE: Sheringham station gets green light for platform build

The extent of the difficulties faced by the charity came to light as actor and theatre president Surrane Jones announced a playwrighting competition to help raise funds for the theatre. 

Miss Thompson said: "The problem is a lot of our sponsors are small businesses themselves.

"All small businesses are going to be struggling.

"But the show must go on; we will have to be inventive and find ways to survive."

In terms of National Insurance at the moment businesses pay a rate of 13.8pc on employees' earnings above a threshold of £9,100 a year.

In the Budget Chancellor Rachel Reeves said this rate would increase to 15pc in April 2025, and the threshold would be reduced to £5,000.