Theatre managers say they need support for £20m of modernisation work within the next decade.
MP Rachel Taylor calls for a planned hub, which included education and training, to be in Atherstone.
No places in Somerset make the shortlist for the UK's first Town of Culture accolade for 2028.
Lisa Nandy says her department is also leaving Elon Musk's platform, which she claims "isn't healthy for our democracy".
The 123-year-old club has helped generations of boys, and later girls, with sport, art and music.
Some parents believe whether the government will take strong enough action remains to be seen.
A BBC Panorama investigation revealed allegations that two women had been raped during filming.
The theatre says funding will "transform the experience for our audiences" for years to come.
The building at Underbarrow is now Grade II* listed and work is ongoing to research its history.
