Newcastle City Council is planning to cut all funding to arts organisations in the city, including the Theatre Royal, Northern Stage and Live Theatre.
Seven Stories, which has recently been awarded the title National Centre For Children’s Books, will also be hit.
Some venues may shut or merge, with Seven Stories and the Theatre Royal “particularly vulnerable”, the council said. Both said they are not at risk.
The council is cutting services and 1,300 jobs to save £90m a year.
It is also expected to shut 10 libraries under its plans, which would be phased in over three years.