Managers of a community resource centre warn they face a dire financial struggle after being refused permission to use an advertising billboard on its side wall.

Staff from Community Base in Queen’s Road, Brighton, were shocked and angry at the Brighton and Hove City Council decision which will cost them £18,500 a year in lost revenue.

Those costs will instead have to be passed on to more than 20 charities and community groups which rent space in the building, several of which are already struggling because of the recession.

Community Base director Colin Chalmers said their anger over the refusal had been made worse by a belief the billboard had been banned for political reasons.

At a council planning committee meeting, Conservative councillors said the sign had been used for political adverts.

They were believed to be referring to a Green Party poster displayed on the billboard during last September’s Labour Party conference.

The 9m high sign, on the fifth storey of the building, is in a prominent spot on the route from Brighton Station to the city centre and seafront.

Tories then voted not to allow the sign to continue to be used, backing planning officers who said it was detrimental to surrounding conservation areas. They outvoted Green and Labour councillors who said the billboard should be allowed to stay.

Mr Chalmers said: “This was a nasty, politically motivated decision by Conservative councillors that will cause real and entirely unnecessary financial hardship. Ironically, we were recently approached about taking an advert for the Conservative’s Brighton conference later this month, something we’d obviously have been happy to do.”

Community Base will appeal against the decision. A petition has already been launched.

Tory Lynda Hyde, the planning committee chairwoman, said the decision was not politically motivated.

She pointed out both that financial considerations were not allowed to influence planning decision and that she and her colleagues had simply backed the recommendation of the council's experts.

Coun Hyde said: "Unfortunately we cannot take the money side of things into account. We went with the recommendation."

But Green councillor Pete West, who represents the North Laine area, condemned the decision.

He said: "The Tories' behaviour was scandalous and not for the first time betrays how little they care for the needs of ordinary people and how little regard they have for the responsibilities of their office.

"They should be ashamed of themselves for allowing petty party politics to cloud such an important decision."