London Councils' London Boroughs Grant Scheme provides funding for morethan 400 organisations each year, 79 of which are connected to thechildren and young people's sector.
However, it is feared that as part of a review of the scheme, whichcould see contributions from the 33 London boroughs reduced, the budgetcould plummet.
Out of the pot of 28.4m, currently 5.3m benefits childrenand young people.
But the total could be cut by as much as 61 per cent if London Councilsdecides that the money contributed by boroughs can be more effectivelyspent by the local authorities themselves.
Marie-Anne Diedhiou-Roy, children and young people's organisationalsupport officer at the London Voluntary Service Council, said the effectof such a change would be dramatic.
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