Council tax in Brighton and Hove will rise by an inflation-busting 4.9 per cent under a budget agreed last night.

It means the bill for Band D properties for 2006/7 will increase by £60 to £1,277. The budget includes an extra £1.8 million for children's care and an additional £1.5 million for care for adults in need.

Schemes to prevent graffiti and help young people gain skills were given £130,000 each, while £650,000 will be spent making council buildings more accessible to disabled people.

Labour Councillor Simon Burgess, speaking shortly after he was appointed the new leader of the council, said: "We all know resources are tight and there are always increased financial demands on us. This budget is what this city needs - results for our neighbourhoods, our environment and our economy, while being financially responsible."

Coun Burgess said the Government had increased money to schools by more than six per cent this year. He welcomed the free bus travel for pensioners and disabled people, even though the council had to chip in £1.2 million to cover the cost.

A Conservative plan to limit the increase in council tax to 4.09 per cent was rejected by Labour and the Lib Dems at yesterday's meeting in Brighton Town Hall.

Tory proposals to cut funding to arts and voluntary groups in the city, reduce the cost of members' snacks and end spending on Frank Gehry's King Alfred plans were also thrown out.

But the ruling Labour administration agreed to accept a Conservative amendment to spend £30,000 on developing talking bus stops for blind people Conservative finance councillor Brian Oxley attacked the Government for increasing Brighton and Hove's grant settlement by just two per cent this year. He accused the city's Labour group of being a "poodle" to central Government.

The Green Party, whose proposal for a renewable energy fund to tackle climate change was defeated, abstained on the budget vote. Convenor Keith Taylor criticised the Government's funding formula and said council tax in the city had risen by 113 per cent since 1997. He said: "Those on low or even middle incomes are being stretched to breaking point