The venue needs just under £2 million to pay an outstanding builder’s bill or the company which owns and runs it, Greenock Arts Guild, could go into administration – with the loss of 61 full and part-time jobs.

Both Labour and the SNP said ahead of a special full council meeting yesterday that they would support a bailout – and the Scottish Government also made a crucial emergency contribution.

Councillors agreed that the local authority will provide £1.8m, and £600,000 of this will be refunded by the Scottish Government.

The council will also provide a further £750,000, spread over eight years, ‘to address risks associated with the Beacon’s income stream’.

Beacon supporters and opponents crowded into the council chamber for a two-hour meeting, almost half of which was in private for confidential reasons.

The public were asked to leave after initial comments and questions from many councillors.

When the public was invited back into the chambers, Labour and council leader, Councillor Stephen McCabe, proposed a motion to save the Beacon, immediately seconded by SNP group leader Councillor Chris McEleny.

There was no amendment, and the motion was passed without a vote being taken.

Both councillors read out previously prepared statements saying that, even in tough financial times, it was important to keep the Beacon open and that closure would have a negative impact on Inverclyde.

The decision was a snub to the ‘Say No to Beacon Bailout Campaign’ which this week delivered a 327 signature petition to the council saying the Beacon should not be helped while the council faced cutbacks of £7m.

Greenock man John Houston, who led the campaign, shouted “shameful” when the decision was announced, and afterwards insisted the Beacon could have borrowed the money from a bank.

However council finance boss Alan Puckrin cast doubt on this possibility during the meeting.

Beacon chairman Allan Robertson, who attended the meeting, said he was delighted with the outcome.

He said:“This support offers the organisation a position of financial stability and secures the Beacon’s future as a valuable asset for Inverclyde.

“It will allow us to move on with our business plan. We want as many people as possible to visit the Beacon.” Scotttish Government Culture Secretary, Fiona Hyslop, said in a letter to Councillor McCabe: “I am able, exceptionally, to commit the Scottish Government to support the Beacon spread over the next three years.” Greenock & Inverclyde MSP Duncan McNeil said he was pleased that culture secretary Fiona Hyslop gave the commitment during a conversation at Holyrood.

He told the Tele: “I spoke to Fiona Hyslop and she was very supportive in words and action.

“I’m confident that along with action from the council there will be support of funding from the Scottish Government.

“I am delighted they are supporting the initiative.” Mr McNeil acknowledges a lot of work still needs to take place behind the scenes at the Beacon but says the venue is vitally important for the area.

He said: “The Beacon is a regeneration initiative as well, it’s important not just for the jobs but for our identity here in Inverclyde to have a theatre.

“Issues need to be addressed but I’m delighted Fiona Hyslop has confirmed to me that they are being supportive and that the Scottish Government will be making a contribution as well.

“It’s important that the Scottish Government extends support for what is an important asset for the area.”