It is claimed tourists have complained about dirty beaches

The decision means Torbay Council will have to send out revised council tax bills at a cost of about �100,000.

Ministers said the action was regrettable but necessary to stop large-scale increases.

Torbay MP Adrian Sanders said the authority needed to spend money on non-statutory services. Totnes MP Anthony Steen added that the move was "barmy".

'Proportionate response'

The decision means government will cut the authority's council tax increase from a proposed 9.9% to 8.5%.

Local Government Minister Nick Raynsford said the cap was being ordered because "council tax increases were still too high and imposed unreasonable burdens on council tax payers".

He added that the authority had received above inflation increases in general grant for two years running and the move was a "measured and proportionate" response to high spending.

Torbay's MP, Liberal Democrat Adrian Sanders, said tourist areas such as his own had to spend more on parks, gardens and toilets, which were not statutory services, to attract visitors.

He also said Torbay had a large transient population whose social problems contributed to a �1m overspend in social services.

Torbay Council's Conservative group leader said the cap plans were driving tourists away.

Majority vote

Councillor Jean Turnbull said she had heard of holidaymakers cutting short their visits to the bay because of complaints about dirty streets, overgrown grass and beaches covered in stinking seaweed.

She said any cuts would affect how the council could deal with such problems.

Liberal Democrat Local Government spokesman Ed Davey also condemned the move.

The capping order was approved in the House of Commons by 278 votes to 175, a government majority of 103.

Nottingham City Council, Herefordshire District Council, Fenland and Shepway District Councils and Hereford and Worcester Fire Authority also had budget caps approved by the same vote.