London boroughs fear they could lose up to half their funding forchildren's social services under a new Government formula for councilfinances launched for consultation last week.
Dave Hill, head of children's services at Tower Hamlets, said anydrastic cuts would prevent the council from doing preventative work thathelped it to save money by keeping children out of care.
Steven Lord, director of local government finance at the Association ofLondon Government, said: "These services are pretty stretched in Londonand they will say we cannot justify doing prevention work any more."
Association chair Sir Robin Wales said the cuts would "severely hamper"the ability of London councils to tackle child poverty and improve theprospects of some of the most vulnerable children in the country.
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