Hundreds of drivers whose cars were towed away for breaking Parking rules will each get £20 refunds after a council blunder.

Brighton and Hove City Council has discovered that some motorists have been overcharged because of an administrative error.

The correct rate is £105 plus a £30 penalty charge, but drivers were mistakenly charged the London rate of £125 plus the £30 penalty July 16 and October 12.

Drivers who had cars stored in the pound were charged £15 for each 24-hour period when the correct fee was £12 and they too will be refunded.

Parking tickets have all been issued at the correct rate.

Since the council took over responsibility for parking from the police on July 16 more than 33,500 tickets have been issued and almost 600 vehicles towed away.

All drivers who have been overcharged are being sent letters of apology along with refunds.

About 350 to 400 drivers are affected and the total cost of refunds is about £9,000.

The council will formally explain the position in a public notice to be published in The Argus tomorrow.

No one discovered the error until members of a national adjudication service paid a routine visit to the city and noticed it was charging London rates.

The council said refunds would be sent out automatically and should have been completed by November 7. There is no need for people to apply.

Lead transport councillor Alison Hermitage said: "This is a genuine error and we are acting to correct it straight away. We would like to apologise to all those drivers affected."

Tory opposition leader Brian Oxley said: "This kind of thing is reducing faith in the council, irrespective of whose fault it was.

"I am pleased that they are giving people refunds and hope they will be able to trace everyone."

Liberal Democrat leader Paul Elgood, whose Brunswick ward is included in the parking scheme, said: "I am now calling for a double check to be made on all the charges levied by the council. Many people already see this as a money-making scheme."