CREWE and Nantwich Borough Council has been told to "come clean" over financing at the Lyceum theatre.
Liberal Democrat councillor Gwyn Griffiths has written to the council's chief executive, Alan Wenham, asking why no correction was issued after it was reported that the theatre had been making a profit.
Councillor Griffiths was angered by recent reports claiming the theatre was on course to make a £40,000 profit this year, claiming instead that it makes a loss of around £300,000 every year.
"The theatre is a valuable feature of the town and an asset to the whole borough," he said.
"However, I think it is important that the public should be fully informed about how much it is costing council tax-payers.
"Reports that the theatre was making a profit were incorrect, I think it's important this should be made clear to residents."
Councillor Griffiths has demanded an explanation from Mr Wenham as to how the misunderstanding happened.
"Someone must have given information that was either misleading or ambiguous," he said.
"Having seen this misleading story appear, why didn't the council act to issue a correction. Surely the council doesn't want the public to be misled on how much of their council tax is being spent on the theatre."
Mr Wenham said he would only speak directly to Councillor Griffiths about the matter.
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