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THE PLAYHOUSE COMPANY ANNOUNCES OPERATIONAL ADJUSTMENTS DUE TO FUNDING REDUCTIONS

The Playhouse Company hereby notifies its stakeholders that sustained reductions in its baseline grant allocations have necessitated the application of cost-containment measures across all operations for the 2026/27 financial year. 

In compliance with the Public Finance Management Act (PFMA), The Playhouse Company is prohibited to operate a budget that has unfunded deficits without National Treasury approval.  It is therefore in line with these prescripts that unavoidable reconsiderations and reprioritisations in our budget be implemented in order to ensure compliance and financial sustainability. 

Furthermore, in terms of the Cultural Institutions Act (1998), The Playhouse Company Council is responsible for the control, management and direction of the institution. When confronted with continuous reductions in its baseline grant allocations The Playhouse Company Council was put in an unenviable position to effect various cost-cutting measures, including making a formal request for the Minister’s intervention. After all was considered, Management was instructed to submit to the National Treasury a revised balanced budget. 

What followed was a series of ongoing stakeholder engagements in order to work out details of implementation.  

It is indeed a very sad period to effect such cost containment processes for The Playhouse as these will directly and indirectly affect our stakeholders.  

One of the actions in cost savings has been to surrender the Workshop facility which has housed costumes, sets, props, etc. Assets stored in this facility were disposed of in line with approved Policies. Most items were donated free of charge to artists, while others were sold through appropriate processes, including auctions managed by an appointed reputable service provider. All processes conducted are in line with National Treasury Regulations the Public Finance Management Act (1999) and The Playhouse Company’s Policies. 

There is a limited amount of costumes available that artists can still access for hire for their productions. 

In addition, productions for 2026/27 will be briefly reduced as a result of saving running costs in our theatres.  

Another cost saving action, among others, has been to freeze all non-critical positions. 

There are still other areas of cost savings. The list above is an example of the few affected areas in order to save costs meanwhile. 

These measures are the result of external funding pressures, not governance failures. As an example The Playhouse Company has maintained clean audit outcomes for the past 15 years, demonstrating its commitment to accountability, sound financial management and strict compliance with regulations. 

We recognise the impact of these decisions on arts practitioners, audiences and the wider creative sector and we also feel the strain associated with such decisions and we appreciate your understanding and cooperation during this time.

The Playhouse Company remains committed to its mandate and will continue to do all it can to ensure a successful brief transition brought about by external decisions that pertain sustained reductions in its baseline grant allocations. 

Issued by: The Playhouse Company 
18 March 2026