Stable owners say they are living in fear after a 7ft spear was thrown at their horses by children from an illegal travellers' camp.
They say some of the terrified animals have been stabbed with "daggers" made from sharpened sticks.
Now a councillor is calling on Brighton and Hove Council to take advantage of Jack Straw's new recommendations on travellers to evict the group from Hangleton Bottom. Hangleton councillor Peter Willows made his call after complaints from the owners of the 12 rescued horses in fields and stables behind the camp.
The owner, who fears retaliation and does not want to be named, said stable helpers had seen children from the camp throw the spear, made from a surveyor's pole.
She said: "We have also seen them stabbing the ponies with daggers made from sticks sharpened at both ends.
"They also throw bottles and stones at them and when we try to speak to them we get a load of abuse. It's the same with their parents."
She said most of her horses were rescued and she had been trying to get them used to humans again.
But she said a year's work had been undone in the seven weeks the travellers had been at Hangleton Bottom and all the horses were now very nervous near people.
Her business partner, Michael Sheppard, said: "These people illegally broke into the compound at Hangleton Bottom.
"The council has done nothing about it and as a result the horses are suffering and the fields are also being used as a toilet by people from the camp.
"The message the council seems to be putting out is that it is all right to break the law and that you get what you want if you do."
Home Secretary Jack Straw on Wednesday ordered councils and police to crackdown on travellers who break the law or behave anti-socially.
He said that such behaviour should not be tolerated "under any circumstances."
Coun Peter Willows said: "This council has allowed illegal travellers into Hangleton Bottom time and again.
"The attacks on these horses are just the latest in a long line of illegal and anti-social activities these travellers have brought with them. People in Hangleton are fed up with their behaviour and want them out and the place sealed off so they can't use it again.
"Perhaps the council will now listen to the people and use the new guidelines Jack Straw had given them."
A council spokeswoman said: "These are serious allegations which will be investigated. We shall inform social services as there may be child protection issues involved if children at the camp are not being properly supervised.
"Jack Straw has not issued new guidelines on travellers but has acted to clarify confusion over existing rules to councils who were not clear how they affected them.
"This council is absolutely clear what its responsibilities are and was in the forefront of implementing a travellers' policy.
"We are implementing legal proceedings to urgently remove travellers from three sites which we consider to be priorities. These are sites used by the public which is why they take priority and Hangleton Bottom does not.
"However, we have begun the legal process to move the travellers from Hangleton Bottom, which will happen in due course."
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