Sussex councils have been awarded more than £3 million as a government reward for being "business friendly".

Brighton and Hove City Council has been handed £942,460, East Sussex County Council £251,235 and West Sussex £498,276 as part of a scheme designed to boost the local economy.

Eight more district councils across Sussex have also received awards of more than £100,000 each under Local Authority Business Growth Incentives (LAGBI).

It is now up to town hall chiefs to decide how the money is spent.

The scheme was set up last year by Chancellor Gordon Brown to help councils to encourage business growth.

Traditionally, revenue received by councils from business rates has been paid to central government and then redistributed back on the basis of population.

But under LABGI, councils receive separate funding dependent on how friendly they have been to business during the year.

The size of the award is worked out by how much the area's business premises increased their value over the year - their socalled "rateable value".

Treasury Minister John Healey said: "Every local authority now has a direct financial incentive to promote enterprise, employment and the growth of small and medium-sized businesses in the local community."

But council leaders called on the government to award the cash more transparently.

Sir Sandy Bruce-Lockhart, chairman of the Local Government Association, said: "Ministers dangled the carrot of an extra £1 billion over the next three years to councils if they met targets for business growth.

"The extra money is helpful, but with only £105 million so far having been allocated there is a real question as to whether the conditions set down were too complex and too bureaucratic.

"Ministers should simplify the system and allow the money raised locally to be spent locally."

Awards for each Sussex council:

Arun: £431,266
Brighton And Hove: £942,460
Chichester: £216,386
Crawley: £22,099
East Sussex: £251,235
Eastbourne: £76,512
Lewes: £119,229
Rother: £139,870
Wealden: £132,125
West Sussex: £498,276
Worthing: £242,105.

- Wednesday, February 15, 2006