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And where does the Council find these tens of millions of pounds to excavate, source the materials, and build the several hundred yards of Maderia terraces? Especially when they would go through roads (Duke's Mound, Sussex Square Tunnel), or go too high for the Marine Parade (western end)...?

With an application for capital funding like we have here, the council would be expected to contribute... something. Often around 10%-15% or so of the value of the project. Bear in mind Council Tax income accounts for around one-sixth (16.9%) of the total Brighton & Hove City Council income.