Hundreds of vital youth workers could be recruited if ministers restored money stripped from a key pot of cash, town hall chiefs say tonight.
The Local Government Association said 1,239 staff could be paid for with the £122million removed from the Youth Investment Fund.
Ministers have slashed money available from £500m to £378m.
The fund, which was announced in 2019 and is due to be rolled out to 45 councils, is designed to create, expand and boost local youth facilities and services.
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The LGA said that plugging the £122m black hole could pay for more council-based youth and community support workers over three years – bolstering the total number by about a third.
It also believes there is too much focus on bricks-and-mortar improvements rather than staff.
Its Children and Young People Board chairwoman Anntoinette Bramble said: “Councils and youth sector partners have already been waiting more than two years for the fund to get off the ground only to find out that the original funding commitment is being reduced.
“We are also unconvinced that improving facilities should take greater priority over investing in the staff and youth work programmes, which can be transformative to a young person’s life.
“It is important that the Government sticks to its original funding commitment for this vital fund and allows councils to invest in hiring hundreds of full-time youth workers.”
According to the LGA, the average, basic full-time annual salary for youth and community support workers employed by councils in 2020/21 was £24,437.
National Insurance and pension contributions take the total cost to local authorities to £32,803. It said the £122m removed from the Youth Investment Fund could fund the employment of 1,239 workers.
There are currently 4,448 full-time youth and community support workers employed by councils.
Ms Bramble said the recovery from the coronavirus pandemic meant it was “really important that young people are able to build high quality relationships with trusted adults”.
Shadow Local Government Minister Mike Amesbury said: "To properly level up, young people across the country need more choices and chances - that means opportunities to get the skills they need and good, well-paying jobs wherever they are.
"Youth workers are essential in getting this right and for putting young people on the right track to succeed.
“Sadly, this decision to cut yet more long-term funding for local government just shows the Tories aren't serious about levelling-up.”
A Culture Department spokeswoman said: “We recognise the importance of youth services and are investing £560m through our National Youth Guarantee to give every young person access to regular out of school activities, adventures away from home and volunteering opportunities.
"Youth services in the most deprived parts of England can apply to build or refurbish their facilities through the £368m Youth Investment Fund, we are investing £171m to improve young people's life skills through the National Citizen Service, and supporting The Duke of Edinburgh’s Award scheme to reach every secondary school in the country.”
