Council tax bills in Brighton and Hove would have to rocket by almost a quarter to maintain services in the face of drastic government cuts.

The city council has to fill a £17.5 million gap if it is to balance the books by next April.

The choice will be bleak when the powerful policy committee meets later today.

Chief finance officer Chris Taylor said the council had to fund the gap by council tax, savings, or a combination of the two.

If no savings were made, council tax would have to rise by 23.2 per cent. The average (Band D) bill would rise from £922 to £1135.90.

If the council shaved £10 million from its annual spending, there would still be a 9.9 per cent rise, several times the inflation rate.

Brighton and Hove had a poor financial settlement from the Government, which is switching sums from the South to the North to heal the perceived national prosperity divide.

Councillors are being recommended to approach the Government and ask for a review of the settlement.

Meanwhile, a programme of possible cuts is being prepared for a policy meeting in February at which the crucial and uncomfortable decisions will have to be taken.

Chief executive David Panter had already anticipated a poor settlement and suggested a reshaping of services that would make big economies.

Finance officials have estimated the council's budget at £276.2 million for the next financial year.

The Government grant is likely to be £183.3 million and council tax, if unaltered, would raise £75.4 million leaving the £17.5 million shortfall.

Mr Taylor said the news for future years was not encouraging, with Brighton and Hove expected to receive low increases in grant for the next four or five years.

He said: "These will be inadequate to cover pressure on spending.

"It means council tax will need to increase or high-level savings made to meet the balance."