Council tax payers in East Sussex are being told to brace themselves for a 20 per cent hike in bills.

The cash-strapped county council expects to increase average bills by £160 next year.

The increase would mean a Band D bill of £937 from April to pay for high-spending services such as education, social services and road repairs.

The total does not include charges made by lower-spending district, borough and parish councils.

The county council's ruling Cabinet will be told later this week changes to the way Government cash is distributed has created a £30 million shortfall.

The council's Conservative deputy leader, Daphne Bagshawe, pledged there would be no big cuts or redundancies.

There had already been savings and the shortfall would have to be met by taxpayers.

She said a recent meeting with Barbara Roche, a minister at the Office of the Deputy Prime Minister, had raised hopes there might be more cash available.

She said: "I am not proposing to have dramatic cuts in services which would result in dramatic redundancies. I am not going to do that.

"It is not a good settlement - it is an appalling settlement. I want people to understand what the Government is really doing. It is taking away our money and giving it to people in the North.

"I would expect the Government, if it wishes to demonstrate any integrity at all, to respond by doing something for East Sussex but I do not anticipate it would be significant."

The Conservative-run authority made savings of £8 million last year in order to deliver one of the lowest council tax rises in England.

Keith Bridger, leader of the council's Labour group, said it was too soon to know what council tax increase there might be until the finalised grant level was announced by the Government next week.

About two thirds of local authority income comes directly from the Government while the remainder is raised from the council tax.