Budapest is the best bet for Britons looking to stretch their holiday spending money.

The Hungarian capital offered the best value for money of 25 destinations in a cost-comparison table compiled by Post Office Travel Money.

Twelve typical city break items, including meals and accommodation, cost just £134.76 in Budapest.

This compared with Europe's most-expensive cities - Stockholm (where the items were £420.36) and Copenhagen (£440.45).

Other good value cities for holidaying Britons at the moment are Lithuania's capital Vilnius (where the items cost £140.99), Warsaw in Poland (£151.69) and Riga in Latvia (£155.34).

But with the pound falling against most currencies in recent weeks, the survey showed that prices, for Britons, have risen year on year in 22 of the 25 cities in the comparison table.

Vienna's costs were up 26.3%, with Boston in the USA rising 28.4%, Riga up 30.7% and Stockholm increasing 33.0%.

The three exceptions were Berlin, where prices were down 1.5%, Prague, down 6.8%, and Lisbon, where lower sight-seeing prices have helped push the Portuguese capital's overall costs down 19.1%, making it the cheapest eurozone city.

Dubrovnik in Croatia topped the list of emerging cities Britons would most like to visit, followed by Moscow and Krakow in Poland.

If money was no object, Britons said they would most like to visit New York, with Sydney second and Rio de Janeiro third.

Andrew Brown of Post Office Travel Money said: “Rising prices in most of the cities we surveyed, combined with the falling value of sterling, make it more important than ever to check prices for key items like meals, drinks and sightseeing before booking as these are costs that most city break tourists cannot avoid.

“There are big price variations across Europe - not just in the eurozone.

“This means UK holidaymakers can make their pounds stretch further by choosing a cheaper capital like Lisbon or Budapest.”