Residents have been urged to demand a fairer deal from central Government.

East Sussex County Council wants to impose a maximum five per cent increase on council tax next year but believes this would still leave the council with a funding gap of £5.6 million.

The council said the gap was due to an unfair formula used by the Government when calculating the level of grants given to local authorities.

Cuts will be made to frontline services unless the Government substantially increases the grant given to East Sussex.

Councillor Tony Reid, deputy leader and lead cabinet member for finance, said the Government grant given to East Sussex was poor in comparison to other regions.

He said: "We think there are flaws in the formula that the Government changed three years ago.

"The council tax burden is 40p for every £1 spent on public services.

"Elsewhere in the country, the average is 30p.

"It's obvious that the Midlands and the North have received disproportionate shifts of money from the South-East."

Average earnings in East Sussex are £20,880, which is lower than the average of £20,952 in the North East.

But the average price of a three-bedroom semi-detached house in East Sussex is £199,718, much higher than the average price of £125,013 in the North East.

East Sussex County Council also complained that the burden on council taxpayers was much higher in East Sussex than in most Shire counties due to the high proportion of elderly people.

Almost 22 per cent of people in the East Sussex County Council area are elderly, which is the second highest proportion in the Shire counties.

The county has the highest proportion of people aged over 85 at 2.8 per cent.

The Government is due to decide the level of grants given to local authorities in December.

Residents are asked to let the Government know their views by writing now to: Phil Woolas MP, Minister for Local Government, Office of Deputy Prime Minister, 26 Whitehall, London SW1A 2WH.