Council leaders in Sussex were today braced for bad news as the Government announced how much cash they would get next year.

Many fear stiff increases in council tax bills or cuts in services after being hammered by new funding rules introduced last year.

The Government confirmed the same formula would be used for today's local government settlement, with poorer councils expected to receive another bumper grant at the expense of "wealthier" counties such as Sussex.

Local government minister Nick Raynsford said the average increase for the South-East next year would be 4.7 per cent.

But some authorities could receive as little as 3.5 per cent.

He insisted every council would receive an above-inflation increase and there would be no excuse for huge council tax bills.

The Treasury estimates bills will rise by seven per cent. But Mr Raynsford said double figure hikes would be unacceptable.

Brighton and Hove City Council's settlement from the Government for this year, announced last December, was the lowest-allowed increase of 3.5 per cent, or £6.1m.

The rise would have been even lower if the Government had not put a "floor" on the lowest increase councils should receive.

The "floor" propped up Brighton and Hove's £183.3m grant to the tune of £12m - raising the prospect of even worse grants in years to come as the "floor" is lowered.

East Sussex received an increase of only 3.8 per cent, or £10m. The council's overall grant of £276m had to be propped up to the sum of £9.85m.

West Sussex got a rise of four per cent, or £14.65m, significantly below the national average of six per cent. Its overall budget of £379.5m was helped by £8.9m thanks to the "floor".

Arun, Chichester, Horsham, Eastbourne and Wealden received the minimum three per cent rise. Worthing got a 3.3 per cent rise, Hastings 5.1 per cent, Rother 3.4 per cent, and Mid Sussex 5.2 per cent.

Lewes with nine per cent, Adur 12.5 per cent and Crawley 11.6 per cent all got above-average increases.