Income from parking fines could be used to pick up the tab left by Government for its free-travel-for-pensioners scheme.

A joint Labour-Liberal Democrat budget proposed for Brighton and Hove City Council would allocate £300,000 of projected car parking income for 2006/07 to pay off a chunk of the £1.2 million shortfall the council has been forced to fund.

The money would normally have been spent on new transport projects selected by the environment committee.

Free off-peak bus travel for the over sixties and disabled people will be introduced from April after it was announced in last year's Budget by Chancellor Gordon Brown. They are currently offered half-price fares.

The estimated additional cost to the council of introducing the new scheme is £3.1 million but the Government gave the council just £1.9 million.

Brian Oxley, Conservative Party finance councillor, has described the free bus passes as a "pre-election giveaway" which pensioners will end up having to pay through their council tax.

But Labour leader and finance councillor Simon Burgess said: "The Government's promise is something we feel strongly is right for the city.

Elderly people and people with disabilities will be getting free bus travel and that is important to help get people out of their cars. It's a pity the Government did not put all the money up but it's the right policy."

Under the Lab-Lib budget, which will be discussed at tomorrow's policy and resources meeting and a budget setting meeting on February 23, council tax would rise by 4.9 per cent, taking the bill for Band D properties to about £1,278. The proposals include an extra £1.8 million for children's care and an additional £1.5 million for care for older people, adults with learning disabilities and those with mental health needs.

Schemes to prevent graffiti and help young people gain skills would be given £130,000 each, while £650,000 would go on making council facilities more accessible to disabled people.