The cash councils receive from central government is being slashed by 28 per cent over the next four years.
Chancellor George Osborne also announced that the ringfencing of all local government revenue grants will end from April next year, with the exception of a simplified schools' grant and a public health grant.
This means individual councils will have to decide where the axe should fall, which has prompted concerns from charities including the Children's Society, who warn the move could lead to a "postcode lottery for the poor".
Cuts are expected across children's services, but youth services and Connexions are likely to suffer more than most.
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