The committee supported the allocation of £45m from the Heritage Lottery and Arts Lottery funds for the South Bank refurbishment.
It said: "It is unacceptable that artistic events of the highest quality, equalling or exceeding all international counterparts, should be condemned take place in such a squalid, seedy and menacing environment."
The select committee accepted the South Bank Centre's argument that it suffered from a catch-22 in which funding could not be fully assembled until planning consent was granted, but planning consent was often given only on condition of funding. However, the committee made no suggestions as to how the impasse could be resolved.
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