Refuse company Sita starts a new multi-million pound waste contract in East Sussex tomorrow.

The French-owned firm begins a seven-year term in Eastbourne, taking over from current contractors Serviceteam.

Part of the deal involves introducing wheelie bins and recycling boxes to every household in a bid to hit Government recycling targets.

The contract, costing £1.6 million next year alone, is one of the main reasons why Eastbourne has one of the country's biggest council tax rises, 38 per cent.

Average Band D residents will be paying four-figure bills for the first time at more than £1,209.

Lib Dem leaders on Eastbourne Borough Council insist they accepted the best deal available but regret having to make such large increases.

Sita's last contract in Sussex ended in disaster. It was ditched a year early by Brighton and Hove City Council amid widespread public fury at festering rubbish mounds on streets.

In June 2001, the company agreed to give up its £6.9 million contract and pay back £3 million.