Homelessness in the Arun district has reached crisis point, with the council spending more than double last year's sum on temporary accommodation.
Arun District Council has had to push up its anticipated budget for 2002 to 2003 from £70,000 to £170,000 to match the increasing number of homeless people.
The problem has been made worse by a fall in private rented housing. This has meant the council has had to spend more on bed and breakfast places.
Now the council is to decide if the extra £100,000 should be set aside for temporary homes on Monday.
A council spokesman said: "A group has been set up along the South Coast of local authorities from Arun to Hastings because we have all got the same problem.
"There is a lack of private rented accommodation and an increasing number of applicants.
"There are lots of factors involved in the increase in homeless people and lack of accommodation.
"The lack of private rented accommodation is because landlords can make such a profit on selling. The housing here is in the commuter belt so more people are moving here.
"The can also command high rents so for people on housing benefit it's difficult to afford it."
Littlehampton Churches Together is holding a candlelit procession, starting from St Mary's Church, through the town to mark Homelessness Sunday this weekend.
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