A city gallery which launched the careers of hundreds of Manchester artists faces closure after losing its funding.

Castlefield Gallery has been a creative hothouse for artists for the last 25 years.

Many of its proteges have gone on to exhibit in national galleries including the Tate. But now the Arts Council has wiped out the ‘lion’s share’ of its income. In 2010 it received £100,000 – but from next year it will get nothing.

Director Kwong Lee says he fears the gallery could close.

“There absolutely is a risk of that,” he says.“If we don’t get any money in 2012 onwards then what we have is a building – we still have overheads. The board will have to decide what to do.”

The gallery has been receiving annual Arts Council grants since moving into its current home on Hewitt Street a decade ago.

Since then it has launched the careers of many successful artists such as Olivia Plender, who is currently exhibiting at the Haywood in London, and Owl Project, who have just won a major contract at the 2012 Cultural Olympiad – part of the Olympic celebrations.

But when the Arts Council announced its next three years of funding earlier this week, the gallery was not on the list.

An Arts Council spokeswoman said they has tried to focus on ‘outstanding’, cutting edge applications.

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