The government is reducing grants to councils by £1.165bn this year, as part of a wider programme of £6.2bn cuts.
To balance this, Chief Secretary to the Treasury David Laws announced that the ringfencing covering more than £1.7bn of grants to local authorities would be removed, giving councils "greater flexibility to deliver on their priorities".
In children's services, schools, 16 to 19 education and Sure Start funding will remain ringfenced.
But Kim Bromley-Derry, former president of the Association of Directors of Children's Services, warned that non-statutory services could face the chop.
"The protection of budgets for schools, Sure Start and 16 to 19 provision is good news and will allow these services to continue the hard work they do with children and young people," he explained.
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