Businesses in Eastbourne could face an extra tax as part of an American-style proposal to improve communities.

Council bosses plan to create business districts across the town and firms would pay an additional rate to help improve their areas.

Members of the business community would vote on how the cash should be spent. Proposals would have to gain a 51 per cent vote to be passed.

The scheme - known as Business Improvement Districts - was pioneered in the US, where more than 1,200 BIDs have paid for security and environmental improvements.

The Government has used the American model as the basis for its proposal to introduce BIDs nationally from April 2004.

It also has the support of Eastbourne Borough Council officers.

But some small business owners have condemned the plans as a stealth tax in the waiting.

Steve Hartley, landlord of the Gildredge pub in Terminus Road, said: "The council is getting enough money out of me as it is - £1,100 - so they're not getting any more.

"We pay them enough to keep our areas clean, yet this sounds as if they are trying to duck their responsibilities and make businesses pay."

Council regeneration director Norman Kinnish predicted BIDs in Eastbourne would take up to two years to set up.

He said the extra levy, which would also have to be paid by owners of empty units, would not be a stealth tax.

Mr Kinnish said the cash could be used to market empty properties or promote the town as a tourist destination.

He said: "We have had businesses approach us saying they would be enthusiastic to take part if everyone else contributed as well.

"But there has been concern about the free-rider, businesses who benefit from the improvements but who don't contribute. That's why it's important for businesses to put their views forward."