The Jubilee Waterside Centre in the London Borough of Camden had its council grant slashed from 64,000 in 2005-06 to 16,000 in 2006-07, and will receive nothing in the next year.
Martin Shaw, chair of trustees at the centre, said: "The council has been funding us for about 28 years. It was a reasonable expectation that it would continue." Shaw said the centre, which relies on a team of about 20 part-time freelancers and seven full-time workers, needs 30,000-50,000 immediately to pay staff wages and bills.
Between 600 and 800 young people use the centre each week. Camden Council, which owns the freehold to the centre, issued a statement criticising it for not opening in the evenings and weekends, and for its financial efficiency and marketing. The statement said: "We don't want to lose this community resource. However, we cannot continue to step in each time the centre is in difficulty."
John Rowlinson, chief executive at the centre, commented: "Camden Council says 'be financially aware' but part of that is not opening when there are no bookings. We want people to be aware that we offer personal developmental opportunities for young people, but youth services and Connexions just see us as a place for kayaking, canoeing and climbing."
The centre, which costs about 400,000 a year to run, brings in about 250,000 from user fees, and also gains project-based funding from a range of sources. It was revamped between 2001 and 2003 with 3m from Sport England and other sources.
Shelagh O'Connor, director of the New Horizon Youth Centre in Camden, said: "Our young people usually go to the centre once or twice a month. It will be terrible if the Jubilee closed."
www.jubilee-centre.org.uk.