Thousands of council tax payers face a £45 rise in their bill despite cuts to services.

The bill for East Sussex County Council services will rise to £965 for the average Band D home next year.

The expected council tax rise of 5.2 per cent follows a major rise in the levy last year of 20 per cent.

East Sussex is the first major council to declare the expected level of tax for next year but rises are expected across Sussex.

The budget proposals from the ruling Conservatives at East Sussex County Council will also mean job losses.

money for services such as schools and social care, roads and libraries would be protected but bureaucracy will be slashed.

Deputy council leader Tony Reid drew up the draft budget and admitted many households would struggle to pay.

He said: "People on low incomes are reaching the point where we are expecting the public to pay more than they can afford, never mind willing to pay.

"The Government presumes that every year council tax is going to go up but we are concerned about people on fixed incomes."

Council leader Peter Jones admitted the authority's 23,000 staff would face some job cuts but ruled out redundancies.

He said: "We are going to have to find ways of doing things more cheaply.

"The biggest part of our costs is people so we will have to do the same work with fewer people."

The council leaders said East Sussex had been shortchanged by the Government because of the amount of grant promised. Council tax in the county pays for 40 per cent of services compared with a national average of 25 per cent.

The Government has promised an extra £12 million but almost all the money has to go to schools.

The council now spends £208 million on education but some local education authority services will be reduced.

The grant will mean an extra £500,000 but the council claims this will cover just one tenth of the cost of inflation over the year.

The total Band D bill, which includes money for police and fire services as well as district and borough councils, stands at £1,172 in Lewes.

This compares to £1,068 for Band D households in Chichester and £1,074 in Brighton and Hove.

The budget and level of council tax will be set in February and come into force in April.

Tax increases are also expected in Brighton and Hove with the council again concerned about the level of Government grant.

The tax level set by neighbouring West Sussex County Council for next year is expected to be announced next month.