THE budget could cost Brighton and Hove a combined £200 million, council leader Warren Morgan has warned.

The city could lose £150 million in schools funding by 2020 as a result of a plan to force all schools to convert into academies, as well as £50 million in lost business rates.

Councillor Morgan also condemned the Government’s “ideological assault” over academies, and said a city co-operative could be established to stop wealthy trusts snapping up the best schools, while leaving others to fall behind.

He said: “We are yet to see the detail of how this will impact on Brighton and Hove, but looking at the Chancellor’s announcements it would appear that the city council will lose another £150 million in funding for schools by 2020, as all schools are forced to become academies.

“The Chancellor said that all councils should become self-funding by 2020, but he has potentially stripped us of almost £100 million in business rates, half of which we get now, the rest we stood to get in 2020.”

Also in the budget more small businesses will get full business rate relief from next April. With almost 99 per cent of small businesses in the city employing less than 200 people, most potentially will stand to gain from this.

Cllr Morgan added it was good news for small businesses, but "financially disastrous for the local services those business rates fund”.

However a spokesman for the Department for Communities and Local Government refuted Cllr Morgan's claim.

He said: “Local government will be compensated for the loss of income as a result of the business rate measures announced in the Budget.

“Longer term, the impact will be considered as part of the government’s work with the sector on implementing 100% business rate retention.”

The move to academies would lead to a loss of £1.6 million in business rates, with academies getting 80 per cent business rate relief whereas council schools pay 100 per cent.

On academies he added: “The Government needs to recognise that local authorities are in a unique position of having the best knowledge for the local area which is essential to plan school places and ensure provisions are equally and appropriately distributed.

“The Government is taking this ability away from local authorities, which will lead, in the future, to greater inequality and disparities between schools.”

Campaigner Natasha Steel, who was part of a campaign which fought a bid to turn Hove Park School into an academy, vowed to fight and resist the announcement.

Ms Steel, who helped collect 2,000 signatures against the previous plans, said: “There’s no evidence that standards improve at academies.

“The real worry is the lack of accountability from the local community.

“We will be fighting and resisting this legislation.”

Any schools that fail to convert could be forced under radical new powers to be adopted by the Government.

Schools will also extend the school day to 5.30pm to help working parents, while the proceeds of a sugar tax on fizzy drinks will boost sport in primary schools, while secondaries will get funds for after-school activities.