Council tax is to rise by almost £60 a year in Brighton and Hove.

City councillors have voted for a 4.8 per cent increase - taking the average householder's bill to £1,218.

The rise, pushed through by Labour and the Liberal Democrats at a council meeting yesterday, is the lowest since the city council was formed in 1997.

The cash raised will release an extra £6 million for social care and £3 million earned from parking charges will be invested in transport and environmental schemes.

The budget takes into account a four per cent rise in the city's Government grant, one of the worst settlements in the country, and £3.6 million savings found from existing budgets.

Finance councillor Simon Burgess said the budget for 2005/06 would safeguard essential services.

He said: "I'm quite happy to defend our record. No one likes putting up council tax but this council represents rather better value for money than neighbouring county councils."

An attempt by the Conservatives to restrict the rise to 3.8 per cent and reduce parking charges by axing council workers' jobs and cutting funding to arts and housing groups was thrown out.

A proposal by the Green Party to raise taxes by 4.7 per cent and pump more money into tackling traffic congestion was also dismissed.

Conservative Party leader Garry Peltzer Dunn accused Labour of propping up its spending plans by "raiding the soft option" of parking charges.

He said Labour was responsible for doubling council tax in eight years.

Green Party convenor Keith Taylor said the Labour Government had sent Brighton and Hove on a "downward spiral" by giving it a smaller grant than other councils.

Chichester District Council yesterday announced an increase in its council tax of 2.5 per cent for the second year.

The council said the tax is the second lowest increase in West Sussex, the third lowest in the South East, and the eighth lowest in England, with some results still to come in.

Brighton and Hove council tax for 2005/6 will be: Band A £812.06; Band B £947.39; Band C £1,082.74; Band D £1,218.08; Band E £1,488.77; Band F £1,759.45; Band G £2,030.14; Band H £2,436.17.