The Local Government Association has issued the warning as councils wait to find out how much they will receive from central government youth justice grants for 2019/20.
The total value of the grants has already been halved over the last nine years, from £145m in 2010/11 to £71.5m in 2018/19, and the LGA is concerned further cuts are imminent.
The association says that at the very least last year's funding levels need to be maintained if work by council youth offending teams to address an increase in knife crime among young people is to be protected.
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