Plans to limit right-to-buy schemes in areas of housing need have been called spiteful by a top Tory.

Deputy Prime Minister John Prescott is expected to say next week that the Government will put a cap on discounts offered to council tenants buying their own homes in regions such as the South-East.

He believes the scheme has led to a shortage of properties within the financial reach of key workers such as nurses and teachers.

Tenants qualify for discounts of up to £38,000 but Mr Prescott is expected to give councils the power to limit that to £20,000.

Coun Brian Oxley, leader of the opposition Tory group on Brighton and Hove City Council said: "This will do nothing to make more social housing available.

"He will not encourage council tenants to buy in the private sector by enhancing the grants available to tenants as we proposed in Brighton and Hove some years ago.

"He does not seem to understand that lowering the discount will simply encourage families to stay put in their council homes, reducing turnover of properties.

"His spiteful attack on home ownership will completely ignore the special circumstances of Brighton and Hove where we have an active private sector and that sector should be encouraged.

"We need to see how the new rent rebate arrangements work in helping people who need lower-cost housing to rent in the private sector before attacking a right enjoyed by council tenants for more than 20 years."