Cash-strapped schools in Brighton and Hove were thrown a £1 million Government lifeline today to stave off a spending crisis.

City education bosses said the one-off grant would mean an extra £31 being spent on each child.

Council leaders and MPs had pleaded with education ministers to make Brighton and Hove a special case after the city received the lowest Government grant increase in the country last year.

The £960,000 grant was announced today by schools minister David Miliband.

East Sussex County Council will be paid a top-up grant of £110,000. West Sussex County Council has not been allocated any extra cash.

City education councillor Pat Hawkes said: "We will have to discuss with schools how best to focus the money but we are thrilled."

The money is being paid after confusion caused by the introduction of a new formula for allocating cash to councils.

Councillors were furious when Brighton and Hove was hit by rules which shift cash from the south to Labour heartlands in the north, and received the smallest possible increase of 3.5 per cent last December.

At the same time, money paid to the council through the Education Standards Fund decreased.

This left Brighton and Hove unable to meet the Government commitment to increase spending per pupil by 3.2 per cent across England and Wales.

Coun Hawkes said: "There is huge potential in our schools if only we can get back to where we should be and 3.2 per cent seems to be very fair.

"The results are proving money is well spent. We are getting results from many of our projects and children have increased enthusiasm for going to school."

Hove MP Ivor Caplin said: "This is good news which shows the Government's commitment to invest in not just buildings and infrastructure but in all parts of the education system."