Liberal Democrats say councillors' allowances should be cut to provide more money for community groups.

Many groups were angry this week when Brighton and Hove City Council decided on a grants package that left them with less money or none at all.

Although the grants budget remained the same, the council used a new formula to work out the sums.

The Citizens' Advice Bureau said it faced closing its Hove branch.

The Lib Dems said the council should cut councillors' allowances to the levels of two years ago, saving £200,000 annually.

This would still leave councillors with basic allowances approaching £5,000 a year and many of them would qualify for extra special responsibility allowances.

Lib Dem leader Paul Elgood said: "When times are tough, councillors must lead by example. It really is as simple as that.

"This would still leave councillors with significant allowances, higher than those in most comparable authorities.

"It would not mean all groups getting the total funds they applied for but it would make more money available for their vital work.

"When councillors make tough choices, they should consider all options, including that of their own allowances Every pound will make a difference for these groups."

Labour cabinet councillor Don Turner, who deals with grants, was not available for comment.

But Tory opposition leader Brian Oxley said: "This should not become an issue of councillors' allowances.

"The issue is whether we need to look at the whole issue again following this grotesque grants settlement."

Brighton Rape Crisis Project was turned down by the city council for funding. The only such service in Sussex, it has provided free counselling to hundreds of women during the past 19 years.

Dee, a counsellor, said: "To be raped can be a devastating experience for a woman.

"For the council to close the project down shows that for the new city council, rape is simply not an issue."

Lynn Gallagher, a director of the project, said: "We are shocked that in a city that has a reputation for protecting minority rights and services for vulnerable groups, the council has diverted funds from small charities to high profile media and arts organisations, which are able to generate money themselves."