A survey conducted by the Local Government Association (LGA) found that just seven per cent of councils say they have sufficient powers and funding to meet their legal duties to identify and reduce teenage disengagement and secure suitable education and training places for all 16- to 18-year-olds.
The LGA said 40 per cent funding cuts imposed on councils from central government since 2010, alongside the removal of council powers over key services such as careers advice, national engagement programmes and further education, are "risking the future" of thousands of young people.
The survey found that nine out of 10 councils have reduced spending on services for 16- to 18-year-olds, while one in 10 councils has reduced spending by 70 per cent or more.
Only seven per cent of councils said they had sufficient resources to reduce teenage disengagement and properly support 16- to 18-year olds.
More than 80 per cent of councils surveyed said greater devolution and flexibility would allow them to further reduce Neet levels, which currently stand at more than 738,000 16- to 24-year-olds across England.
The LGA is calling on the government to take a number of actions, including:
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