Leeds City Council has approved plans that will see arts funding reduced by 15 per cent over the next few years.
The council currently has a budget of nearly £3m, which it issues to a number of arts organisations, but will be cut to just over £2.5m. The enforced changes also mean the maximum application will be capped at £750,000.
The cuts come as Leeds is preparing a bid to be the European Capital of Culture in 2023.
But Leeds City Council states that the new programme will improve and simplify the application process and will double the minimum level of grant from £1,000 to £2,000.
There will also be a continuation of a three-year grant funding support for cultural groups, such as Leeds inspired and Leeds West Indian Carnival.
The first stage of budget cutbacks will start in 2014/15 with the second reduction in 2016/17 where it will be cut by 10 per cent and five per cent respectively.