The National Student Drama Festival will be fully funded by Arts Council Yorkshire in 2009 and 2010 following a year-long review.

Last year the event faced threats of major funding cuts but the crisis was overcome with the help of some of the biggest names in theatre.

The festival has been based in Scarborough for 18 years and provides a major out-of-season boost to the town’s economy as students spend a week in the town staying in local hotels and visiting pubs, clubs and restaurants.

The 2009 festival will run from March 28 to April 3 with performances of student shows and more than 170 workshops.

Entries for productions close on February 20 and already 70 students shows from across the country have been entered, hoping to be among those invited to be performed during the event.

All aspects of theatre skills will be covered in the workshops including directing, devising, site specific work, cross platform media, choreography, stage and sound design, set construction, lighting design, puppetry and circus skills.

The festival is in its 54th year and has provided a launch pad for the careers of many top-name performers including Stephen Fry, Rik Mayall, Simon Russell Beale, Meera Syal and Michael York, as well as Mark Gatiss and Steve Pemberton of The League of Gentlemen.

Arts Council bosses have also committed additional funds to a joint exercise exploring ways to extend the festival’s access and reach.

Festival artistic director Holly Kendrick said: “The Arts Council’s funding for our festivals in 2009 and 2010 is now secure and we look forward to working with them to ensure that their funding continues into 2011 and beyond.

“We would like to thank all those who gave us their support when our Arts Council funding was under threat.”

Cllr David Jeffels, Scarborough Council’s cabinet member for tourism, added: “It’s great news that they have this funding for the next two years because the festival does bring money and prestige into the town.

“It’s good business for the hotels, shops and restaurants in the early part of the year. We’re very fortunate to have been hosting this important festival for so many years.”