Spending cuts of £24million were approved by Salford councillors yesterday.
Funding for youth services was slashed by £1.3million, after losing £1.7million this time last year, making it one of the bigger casualties of the latest Labour budget.
Salford City Council approved the proposals, which also involve 360 job losses, accepting the need to make the savings on top of the £40million that was cut last year.
Councillor Bill Hinds, Lead Member for Finance at Salford City Council, said: “This is not a budget I am proud to lead but this is the budget we have had to deliver in the face of unprecedented cuts.
“Once again we are in the difficult position of needing to make huge budget savings if we are to deliver a balanced budget for the next financial year.”
The cuts to youth services will have a direct impact on careers and employment advice in the city, where 2,500 people aged 18-24 claim Jobseeker’s Allowance (JSA) according to the Office for National Statistics.
According to The Prince's Trust, youth unemployment can have serious and long-lasting consequences.
A spokesperson for the youth charity said: "Unemployment can have a big impact on a young person's future development.
"It can have a knock-on effect on a young person's self-esteem, their emotional stability and overall well-being."
The total number of people in Salford claiming JSA stands at over 8,000 and is well above the national average.
In their report, Labour blamed the Coalition for excessive cuts in local government funding, forcing them to slash allowances for important public services.
Cllr Hinds said: “Inevitably people will suffer as a result of these cuts, but we have been forced to make them by the coalition government.”
Other areas hit by the new budget are Community Health and Social Care, which is to lose £4.6million and 87 jobs across all departments, and transport for disabled children, which has been cut by nearly £500,000.
The cuts are necessary as part of the Coalition’s four-year local government expenditure reduction, which will see further savings of around £38million over the next two years.
Cllr Hinds said: “What we will now do is make the most of the budget we have left for the people of Salford.”
One positive for Salford residents is that council tax has been frozen after the government offered a grant, equivalent to a 2.5% increase, to councils that kept their rates the same.