Among the biggest losers from the proposed budget for next year is a children's centre in the third most deprived postcode area in the country.
Leicester Council informed the St Matthews Children Action Group that it proposed to stop its 64,600 annual grant, which would force the centre to close.
The group provides services for more than 50 children a day, offering an after-school activity service and several play schemes throughout the year.
It receives money from the Children's Fund but that will end in April.
Kuljit Singh, project manager at the group, said: "As far as I am concerned this is going against the Government's agenda. It seems ridiculous after the Victoria Climbie case.
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