Tory controlled West Sussex County Council is on a collision course with the Government over a possible cash freeze.

The freeze would mean either cuts in services or increases in council tax.

Government ministers have indicated they may not increase the grant that recognises the high cost of living in the South East for the year 2001-2002.

West Sussex County Council leader Graham Forshaw is urging the Tory MPs for West Sussex to actively oppose the Government's proposals.

If the Area Cost Adjustment grant is frozen for West Sussex it will mean the county council receives £24 million from central Government funds instead of £28.5 million as expected.

That will leave a shortfall of £4.5 million which can only be made up from cuts in services or an increase in council tax.

Leader of the county council Graham Forshaw said: "The sum of £4.5 million represents nearly one per cent of the county council's budget. When you think of that in terms of £2.5 million for schools and £2 million for social and caring services, which has already seen its budget pared to the bone, you realise how much is at stake.

"We are urging all our MPs to actively oppose the Government's proposals."