Nottinghamshire County Council’s Local Improvement Scheme (LIS) fund is to be slashed from £3m per year to £500,000.
The fund helps local community schemes ranging from the creation of skate parks and play parks to the restoration of war memorials and the refurbishment of town centres.
The scheme has now been refocused to target money at areas of deprivation. Outstanding projects where work has still not commenced will be reviewed.
Cllr Jim Creamer, head of the LIS funding panel, said: “This is a very frustrating situation to be in but the severity of the Government’s funding cuts leaves us with no option.
“Rather than close the scheme completely we have been able to develop a revised Supporting Local Communities Fund.”