Eastbourne council leader David Tutt has accused Brighton and Hove Council of lying.
Eastbourne Borough Council is calling on the city council to review its policy of moving its homeless residents to the town and to use government funding to find alternative accommodation in Brighton instead.
Eastbourne council leader David Tutt said Brighton and Hove City Council had not informed Eastbourne officials of its placements in the town, with the matter only coming to light after concerns were raised by business groups.
Cllr Tutt said: “The statement is that they can’t find accommodation in their own city. Our officers have found accommodation in Brighton and Hove and we can show them exactly where that accommodation is.
“So it is a falsehood to suggest that they can’t cope within their own boundaries.”