Deputy Prime Minister John Prescott has refused to meet an all-party delegation from East Sussex County Council, which faces a cash crisis.

Leaders of the council's three main parties asked for a meeting to discuss proposed changes in the way the Government funds local authorities.

But Mr Prescott's office declined, saying he has a congested diary as he attempts to resolve the firefighters' strike.

Officials on the Tory-run council say the changes would be devastating. They expect to lose between £4 million and £44 million.

Losing £44 million of Government aid would result in a 35 per cent increase in council tax bills next year or huge cuts in services.

Losing £26 million, a mid-point figure, would result in a 23 per cent increase in council tax bills and cuts.

All local authorities in Sussex expect to suffer because of the proposed changes.

West Sussex County Council could lose as much as £50 million while Brighton and Hove City Council faces a shortfall of £15 million.

However, East Sussex, which would lose a larger proportion of its income than the others, faces being the worst-hit local authority in England.

East Sussex deputy council leader Daphne Bagshawe wrote to Mr Prescott telling him East Sussex was one of England's poorest counties.

In a reply, Mr Prescott's office declined the invitation to meet and stated the council's grant will not be reduced next year.