As Christmas lights were turned on last night, city businesses said they were expecting a bumper winter season.

Brighton and Hove business leaders are optimistic that free Christmas parking will bring people to the city to carry out their seasonal shopping.

Last night, Brighton’s Christmas lights, the largest seasonal display on the South Coast, were switched on, marking the start of late-night Christmas shopping.

There were live performances from The Sleigh Belles, The Theatre Workshop and surprise headliners X Factor stars Kingsland Road.

Tony Mernagh, chief executive of Brighton and Hove Business Forum, said: “At last wages are growing quicker than inflation, which should boost the confidence of consumers at Christmas.

“Given that the outlook has been pretty miserable for the past six years, I think this could be the Christmas when the people decide to party.”

Throughout December, five of Brighton and Hove City Council’s car parks will be free on the three Sundays before Christmas as well as on Small Business Saturday on December 6.

Gavin Stewart, Brighton Business Improvement District manager, said: “It should be a positive year, the free parking is great and businesses give 110% at Christmas time. Everyone is hoping for a great Christmas and it is a matter of all hands on deck.

“It is always impossible to call, but there is more positivity than there was last year.

“Certainly online trading has gone up but that has not stopped people coming into town.

“We are always optimistic, Brighton is a great city and we are really proud of it. There is fantastic atmosphere and we hope to welcome people to the city.”

Jill Humphrey, chairwoman of the Hove Business Association (HBA), said it was expecting to do “very well” this year.

The HBA launched a festive map to try to drive up footfall in Hove and Portslade. People can collect stamps simply for visiting retailers and be entered into a £500 cash prize draw.

Ms Humphrey said: “I think we have had quite a tough time the last few years and I get the feeling there is a lot more buzz around now. Let’s hope we are in for a merry Christmas.”

Denise Taylor, secretary of Brighton Lanes Traders Group, said that while the free Christmas parking will go ahead, the city would still face problems as the cost of parking would drive away custom.

However, she said she was optimistic and added: “Everybody is smiling.”

Kaye Walker, marketing director of Churchill Square, said: “We are anticipating a buoyant Christmas for retailers at Churchill Square.

“The newly refurbished centre and exciting new mix of retailers has resulted in increased visitors.

“Added to this, we have planned an exciting calendar of Christmas events, such as our annual Christmas Grotto and ever popular Christmas shopper evening, all of which should help keep the centre busy throughout the Christmas period.”