The £2.5 million handout was agreed by the Liberal Democrat cabinet last week, and will rise with inflation, heading off fears that the subsidy would be cut in line with previous announcements.

More than 100,000 visits were made to over 1,300 events in the last year, with almost a third of visits from showing films.

Councillor Mike Rodger said: "I am delighted that the new agreement has been agreed. We are delighted with the performance of the Corn Exchange and the role it plays in West Berkshire's cultural portfolio. There is a great team in place and they are doing a splendid job."

Corn Exchange director Martin Sutherland added: “The confirmation of the Service Level Agreement is good news. It provides an excellent foundation for the Corn Exchange to provide an even richer blend of events and activities."

However, Conservative councillors said more effort should have been put into helping the Corn Exchange expand its commercial activities, so it becomes less reliant on handouts.

Cllr Chopping concluded: “The executive should take its responsibilities as guardian of the public purse very seriously. While it would be reasonable for the current level of subsidy of £420,000 to continue for another year - this amount was in the Conservative alternative budget - the Council should be looking at how it can work with the Corn Exchange to gradually reduce its reliance on public funding over time. Apparently this used to be the policy of the administration, but somehow they seem to have forgotten about it.”