Controversial roadworks to a busy street went over budget by hundreds of thousands of pounds.

The total figure for the roadworks around the Floral Clock in Palmeira Square in Hove came to a total of £965,000.

In Brighton and Hove City Council's 2005-06 financial year, £450,000 was budgeted for the scheme and a further £245,000 for resurfacing the road.

By the time work was finished, the initial budget had climbed to £720,000, a £270,000 overspend which will have to come from the council's budget for the maintenance and improvements of transport in the city.

Work was carried out to install zebra crossings, improve and widen pavements, reduce road to a single lane, build bus shelters, install traffic lights with "green men" and build traffic islands. The development was scheduled to take six months but ran from January to October 2006 to the consternation of nearby businesses.

Serhat Halil, owner of Bona Foodie, Western Road, Hove, said he had lost 50 per cent of business while the work was continuing because of noise and customers having difficulty getting into the shop.

Mr Halil said: "All along we could never understand why the work needed to be done when there were other areas in Brighton which could have used the money a lot better. It's not improved the area or made any difference apart from widening pavements.

"Some residents have said it looks somewhat better but it hasn't been seen as necessary."

Councillor Paul Elgood, who represents the Brunswick and Adelaide ward, said he would call for an investigation into the overspend.

He said: "I can't believe the level of this overspend. It's an extremely serious matter. The junction at Holland Road did need sorting. There are areas of serious road safety problems in the city such as the BHASVIC junction and Castle Square where this money could have been much better spent."

The figures were released following a freedom of information request by city councillor Averil Older.

Reasons given for the overspend included a leaking gas main, the discovery of uncharted basements which restricted the use of heavy machinery and some works being re-phased to minimise disruption.

A council spokeswoman said: "The Holland Road junction was a known accident spot, with ten accidents in three years. The improvements will make it much safer for road users.

"The project was funded by central government as part of the city's local transport plan.

"It's part of a long-term package of measures which will see improvements all the way down to Sackville Road. There was an overspend on this project but unfortunately with engineering works such as this there are costs that can't always be budgeted for, plus we also made changes to the scheme to include additional measures requested by local residents."