Lancashire Council for Voluntary Youth Services last week heard that its long-standing local authority grant has been cut from 45,000 to 25,000.
Ian Ferguson, company secretary for the group, said the cuts are an "unintended consequence" of giving councils more control over funding. He said the problem in Lancashire has resulted from the merger of Connexions with the local youth and community service.
"Lancashire County Council has had a history of good relations with the voluntary sector, but now government initiatives are a priority," he said. "They are on a drive to devolve money to local level, which is leaving county-wide organisations and infrastructure devastated."
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