A council is accepting money for mobile phone masts despite fears they could be dangerous.

Brighton and Hove City Council has admitted it is being paid to provide space for a dozen masts across the city.

The authority refused to reveal how much it received but campaigners believe it could be as much as £120,000 a year.

The revelation comes as the council prepares to adopt tough new rules to restrict the installation of masts.

An internal investigation concluded more should be done to protect children and homeowners from any possible health risks.

Anti-mast campaigner John O'Brien said the council's position of taking money for masts but seeking to restrict their growth was "contradictory and foolish".

But he accepted it was largely dictated by Government policy, which demands councils encourage the growth of mobile phone networks.

Mr O'Brien said: "When the council negotiated deals with mobile phone companies there was no reason to believe the masts caused any harm.

"But now many councils are constrained by planning laws."

He said contracts often lasted up to seven years and new proposals could increase them to ten years.

He said allowing masts on council land could cost the authority much more in future compensation payments than it could ever hope to gain in rent.

Mr O'Brien said: "If it takes the money knowing full well it could be putting people at risk and could in future face legal action then it is sailing a bit close to the wind.

"The costs of compensation in ten years' time will far outweigh any rent it will receive for a mast, which is typically between £2,000 and £10,000 a year."

A council spokesman said: "The council has less than a dozen masts producing a very small annual income. Most of these masts are on bare ground and are multiple-user masts for TV, radio and mobile phones, with the majority of these having been negotiated in the Eighties and Nineties."

An all-party working group has urged the council to curb the installation of telecommunications masts near schools and residential areas.

Councillor Simon Burgess, Labour's representative on the group, said although there was no hard evidence to suggest the masts were a health threat, the council had to play on the cautious side.

He said: "Ultimately if there's going to be a danger then children and those living with a mast are going to be more vulnerable."

Since 2001, there has been an informal understanding that new masts should be refused permission on council land and buildings.

But the working group has called on the council to spell out as official policy its opposition to further masts.

Its proposals state: "The council will not normally grant consents for the erection of telecommunications masts on or near schools, or on residential premises."

The proposals were being put before a meeting of the council's policy and resources committee last night.

If adopted, existing masts would not be affected and private landowners would still be free to accept masts on their property.

The working group noted that an increase in the number of telecommunications operators had triggered a greater demand and intense competition for sites in Brighton and Hove.

It said: "The amount of applications is constantly growing and it is felt the council should now adopt a more strategic and proactive approach to this increasing pressure."