An English theatre which threatened to charge Scots higher admission charges has backed down after a threat of possible court action under the Race Relations Act.

The Maltings Theatre in Berwick-upon-Tweed had initially demanded £50,000 grant funding from Scottish Borders Council because a disproportionate number of Scots were crossing the border for performances in what was once a Scottish town.

The council turned down the demand, branding it "absurd" and theatre management threatened to introduce an additional fee for Scots.

However, SNP MSP Christine Grahame contacted the Commission for Racial Equality in Scotland which told her the theatre - three miles from the border - could be in breach of the Race Relations Act.

The commission said the proposed pricing policy may amount to "indirect discrimination" against Scots wishing to attend performances.

Ms Grahame also contacted the theatre's chief sponsors to highlight the potentially discriminatory policy which the theatre appeared set to adopt.

Last night, it emerged that The Maltings had backed down. In an e-mail to Ms Grahame's office in Galashiels, Ernie Rathbone, vice-chairman of the board of trustees told her: "Since the media managed to turn it into a Border Warfare, the board have shelved the idea."

Ms Grahame said: "This has clearly been a public relations nightmare for the Maltings and I don't think it will have done anything for ticket sales. They have made a huge mistake and are now being forced to backtrack with some speed.

"The irony is that one of their major sponsors was a Glasgow-based charity, the Robertson Trust, which previously gave the Maltings Theatre a £5000 donation.

"That donation exposes the myth peddled by the directors and board members at the Maltings that Berwick taxpayers were in some way subsidising Scots patrons. The truth is Scots have been and will be continuing to fund the work of the theatre through ticket sales."

Ms Grahame added that "the little Englander mentality" shown by the board and directors had been damaging both for their own reputation as a management board and also to the local tourist industry in Berwick.

"But I am glad they have been forced to see sense and removed the threat to discriminate against Scots."

Mr Rathbone said: "Ticket prices will continue to be the same for all patrons, no matter where they reside and no matter what their race, colour or creed."