The family of the murdered Babes in the Wood schoolgirls have appealed for Gordon Brown to waive the tax bill for the restoration of their graves.

Nine-year-olds Karen Hadaway and Nicola Fellows were killed in Wild Park, Brighton, in 1986.

The headstone at their graves has started to deteriorate and their families have been quoted £954 to refurbish it.

They were dismayed to find they would have to pay a further £167 in VAT for the job.

Former police officer Ian Heffron, Nicola's uncle, said in an open letter to the Chancellor of the Exchequer: "In 1987 we sadly buried our girls on a hillside in Brighton. Later we placed a beautiful headstone.

"Time and the elements have taken their toll, the headstone has started to lean backwards, the pictures are fading, basically, we need to have it overhauled.

"We have had a quote of £954 to complete the whole job but we are shocked and dismayed you are levying value added tax on this service."

VAT is collected on business transactions, imports and acquisitions. Although some services are exempt, maintenance of gravestones is levied at the normal rate of 17.5 per cent.

The girls' families say they have had to postpone the work until next year while they raise the money.

Mr Heffron's letter continues: "How can such a task be regarded as having a value added aspect?

"We are told you also charge VAT on funerals.

"Bearing in mind the service charged', this tax is vile and nasty in the extreme."

A spokesman for the Treasury said: "I don't think it is appropriate to comment at this stage because we haven't received the letter."

No one has been convicted of the girls' murder.

Paedophile Russell Bishop was accused of the double murder but his trial collapsed when forensic evidence was called into doubt.

Under the 800-year-old double jeopardy rule, he could not then be tried for the same offence again.

Bishop, a father of three, is being held at Wakefield jail, West Yorkshire, for the kidnap, sexual assault and attempted murder of a seven-year-old girl in 1990.

The 37-year-old has so far served 14 years of a life sentence for the attack.

He was eligible for parole last month but it was refused and he will serve at least another two years behind bars.

Sussex Police launched a fresh investigation into the Babes in the Wood murders in June.

Detectives are hoping new DNA evidence will be found on the girls' clothing.