Talks are underway to secure the future of a shelter for homeless people.
St Patrick's night shelter in Hove is struggling after Brighton and Hove City Council withdrew its £200,000 annual funding package last month.
The decision to axe the funding was made because the shelter's founder, Father Alan Sharpe, refused to turn away homeless people who had no connections to the city, in breach of council policy.
The council was also unhappy with the quality of the dormitory-style accommodation offered to residents of the Hove shelter, which was costing taxpayers £300 per week for each bed.
But The Argus has learnt the council is being asked to grant it a partial reprieve.
As part of its budget proposals, the Liberal Democrat group has suggested giving the shelter £50,000, half the costs of refurbishing and modernising the facility.
Yesterday, the campaign to keep it open was joined by a contender for the national leadership of the Lib Dems.
Chris Huhne, who is fighting Menzies Campbell and Simon Hughes for the top post following the resignation of former leader Charles Kennedy, paid a visit to St Patrick's yesterday.
Speaking after a tour of St Patrick's Church in Cambridge Road, during which he met residents of the hostel and night cafe, which retain council funding, Mr Huhne said: "It's very important the night shelter stays open.
"There will be nowhere else in Brighton and Hove where people can come off the street and know they have a warm place to stay at night.
"You can't turn people away with nowhere else to go and it's admirable that Father Alan will accept anyone who turns up on the doorstep."
A council spokesman said yesterday: "The decision to end the funding was taken by the professionals in the city who know the most about caring for such clients, namely the council, the probation services and health services.
"Three hundred pounds per week of public money for a bed in a dormitory is a workhouse service with five-star prices.
"There are plenty of better services run elsewhere in the city by the council or partners, where clients receive proper care and are not put out on to the street all day as they are at St Patrick's."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article