East Sussex County Council has promised to make key improvements to services in return for a £12 million bonus.

The authority could be in line for the money if it meets targets in housing, education, road improvements, child and youth services, the rural economy and drug treatment services.

The raft of improvements forms a Local Public Service Agreement signed yesterday by councillor Peter Jones, leader of the council, and Lord Rooker, Minister of State for Regeneration and Regional Development.

Measurable improvements must take place over the next three years for the council to be in with a chance of claiming the reward.

On top of the £12 million, the council could stand to receive a £1.3 million "pump-priming" grant and permission to borrow a further £4.5 million if it achieves its targets.

Coun Jones said: "We believe these targets are attainable. They are stretching but that is the whole point of the LPSA - you are rewarded for meeting these high targets."

Coun Jones believes the grant will do little to address the poor settlement the council received from the Government this year.

The local authority grant caused outrage among councillors and residents, whose council tax bills soared.

Coun Jones said: "The amounts involved here are quite modest and don't address the underlying problem that we and every Southern authority face."