Tory councillors in Brighton and Hove are urging the Government to step in to help homeless families meet a housing benefit gap.
Homeless families urgently need help to make up the shortfall between housing benefit payments and rents.
Tory councillors are calling on ministers to act to stop people on benefit being turfed out of homes.
Councillor Peter Lewis, opposition Tory housing spokesman on the city council, said: "The council needs to be more innovative and resolute when dealing with homelessness locally but only the Government has the resources and influence to make a significant difference.
"The Government can and must take urgent measures to address the financial gap between permitted housing benefit levels and the average rent charged in the city.
"There is a £61.06 per month gap between housing benefit and actual rent levels in the city for a one bedroom flat. This is the same for other types of properties.
"No wonder landlords terminate six-month tenancies for people on benefit, it does not make financial sense.
"If the Government made up the shortfall, it would lead to more sustainable tenancies and reduce the number of families ending up in bed and breakfast.
"The council has made many representations on this issue, but the Government has consistently ignored our plight."
Tories say if the Government addressed this problem, it would eliminate the need for homeless families to be put in temporary bed and breakfast housing by 2004.
In a housing strategy document, they support early intervention to avoid the break-up of families and want comprehensive research into the root causes of homelessness in the city.
They say only the private sector can bridge the gap between the need for low-cost housing and the supply.
Tories want a scheme to be introduced to register good landlords and say the Government should introduce tax breaks to encourage businesses to invest in housing.
Financial incentives are needed so council tenants can move to smaller properties if their children have left home.
All non-local homeless applicants should receive immediate support to enable them to return to their own areas or to others with spare capacity.
Coun Lewis said: "Present and planned investment levels by the public sector do not address the housing crisis in the city, so by default, we are reliant on the private sector to increase rental capacity.
"The council should recognise good landlords as being an asset to the city and should promote policies both locally and nationally to increase private sector capacity and reinvestment in present properties. Tax reform is critical in this area."
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