The Arts Council faced an unprecedented vote of no confidence yesterday from hundreds of angry actors and directors opposing its decision to terminate the funding of nearly 200 of the nation’s companies.

Peter Hewitt, the Arts Council chief executive, was subjected to a torrent of criticism and cries of derision. Kevin Spacey, the Oscar-winning star, gave warning of a revolution and Sir Ian McKellen, one of Britain’s finest actors, called the cuts destructive.

Leading actors descended on the Young Vic Theatre, London, to show their support for organisations, large and small, whose future is now in doubt – and to condemn the council as no longer fit for purpose.

Funding for nearly one in five of the theatres, orchestras and other organisations it supports is to be culled from April in what is being described as the biggest bloodbath since the council was set up in 1946.

Nothing could have prepared Mr Hewitt for the level of outrage from an audience of perhaps 1,000 actors and directors. This performance was such a draw that Spacey was among the many who had to stand throughout the two-hour session.

Mr Hewitt faced bitter cries of derision and laughter as he spoke of the need to take some tough decisions, of some companies having underperformed and of the need to breathe new life into the profession by funding new groups.

“Shame on you,” one man shouted from the back. When Mr Hewitt objected to one critic’s calculations as “deeply flawed”, Tim Pigott-Smith, the actor, exclaimed: “So are yours.”

When Mr Hewitt tried arguing that “there is no evidence theatre is being disbanded in this country”, a voice from the gallery could be heard: “You are doing it secretly.”

His audience included a casting director’s dream: Jonathan Pryce, Richard Briers, Harriet Walter, Samantha Bond, Joanna Lumley, Corin Redgrave and Prunella Scales.

Nothing Mr Hewitt said could convince them that he had their best interests at heart. They demanded to know precisely which are the 190 victims.

Christine Payne, general secretary of Equity, the actors’ union, which had invited Mr Hewitt to the Young Vic, said: “All we know is what is leaking out. You are responsible for spending public funds. We have a right to know how that money is spent. It is not open, not transparent. There is no dialogue with the theatre community.”

She demanded to know why there was a funding crisis when there was a good financial settlement from the Government to the council, which distributes £1 billion a year in grants. In the three years to April 2011, the council will get an extra £50 million.

There were numerous calls for Mr Hewitt to disclose the names of the “faceless suits”making the decisions.

Mr Hewitt said that client confidentiality was at stake and that cuts had to be made so that the majority of other clients could receive an increase in funding of at least the inflation rate.

It emerged at the meeting that, through a freedom of information request, the Bush Theatre, West London had found serious mistakes in the Arts Council’s data – it had underestimated the theatre’s audiences by two-thirds.

Sam West, the director, accused the council of being cowardly in cutting back the theatre’s grant by half: “If you don’t believe in the Bush’s work, then have the guts to cut their grant completely.”

Beyond the theatre profession, two highly respected chamber orchestras, the City of London Sinfonia and the London Mozart Players, face the loss of crucial grants.

“This is absolutely shocking. The Arts Council is going to have a revolution on their hands if they do not stop this train wreck” Kevin Spacey

“Any cuts are destructive and disturbing. These are particularly distasteful” Sir Ian McKellen

“I’m passionate about small and regional theatres being saved. If they’re going wrong, let’s make them right. Don't just shut them” Joanna Lumley

Editor's choice

• U2 at Nou Camp Stadium, Barcelona
• The 50 Best Movie Villains
• The 15 golden rules of theatre etiquette