Arts Council England (ACE) has published the findings of a study into the current state of English theatres and the impact of an additional £25m worth of annual investment since 2003.

The Theatre Assessment 2009 report was undertaken by the funding organisation in order to obtain updated information on the condition of theatre across the country, and is the largest study of its kind since the 2001 Theatre Review. Carried out during the summer and autumn of 2008, the document incorporated quantitative evaluation, analysis of existing documents and widespread consultation with the theatre industry, local authorities and other relevant organisations.

A number of key themes were identified by the assessment, which include the need for theatre organisations to show greater ambition, to develop a strategic approach to touring, to focus on increasing audiences and to develop ways of increasing diversity. Barbara Matthews, ACE's director of theatre strategy, said: "The Theatre Assessment has enriched our understanding of the English theatre sector and will help us determine our future strategy, inform our investment decisions and focus our development capacity.

"We want our theatres to be bold and ambitious. This assessment has shown us that the additional confidence and resources the Theatre Review generated enabled many theatre organisations to do exactly that. The task facing us all is to keep making progress, in spite of the economic recession, and to ensure that as many people as possible are able to enjoy the results." The findings of the Theatre Assessment will be used to influence ACE's future funding and strategy decisions.