Dudley council has accused an MP of "point scoring" in a row over how Dudley town centre funding is being spent.
Dudley MP Sonia Kumar has raised concerns about the use of a £300,000 grant from the Mayor of the West Midlands, describing the investment of funds as "unfair" and claiming it does not offer the best support for businesses.
She said business owners in Dudley have been told that £50,000 of the grant will be used to fund a nine-month Dudley council role focused on liaising with businesses and creating a long-term plan for the town.
Ms Kumar said: "What is happening is a carve-up of resources, with Dudley Council the main beneficiary.
"A further £50,000 has been set aside to administer the grant scheme and coordinate engagement with businesses.
"For every £2 going directly to a local business, £1 is going on running the scheme.
"Nothing the council can say can deflect from the reality of the situation Dudley traders find themselves in, namely a torturous and bureaucratic application process with a miserly £5,000 grant to show for it at the end.
"It doesn't even touch the sides of the trade they have lost.
"On top of this, the sum of £50,000 to fund a council officer's post for a fraction of a year represents to the sole traders another kick in the teeth when the individual support package on offer is a tenth of this sum per grant."
Dudley Council has rejected the criticism, insisting that the funding is being used appropriately.
Councillor Simon Phipps, cabinet member for economy and infrastructure, said: "The West Midlands Combined Authority (WMCA) funding package for Dudley town centre includes an agreed allocation of £50,000 for dedicated, fixed-term regeneration capacity to help deliver the programme and maximise its benefits for businesses, residents and the wider town centre.
"The role will work directly with traders and partners to deliver initiatives such as the High Street Growth Incubator, support the implementation of the Town Centre Masterplan, coordinate investment opportunities and help businesses make the most of the opportunities created by the Metro and Interchange.
"Regenerating a town centre requires more than distributing grants.
"It requires dedicated resource to bring together businesses, funding and regeneration activity, develop projects and ensure investment is coordinated and effectively delivered.
"This fixed-term post is focused entirely on achieving those outcomes and creating a long-term vision for Dudley town centre."
Councillor Phipps also addressed the confusion around the use of funds, stating that the £50,000 for programme delivery is separate from the £100,000 SME grant scheme, which is designed to support business improvements such as shopfronts, equipment and security measures and is separate from the Mayor's funding.
He said: "The funding is not being misused.
"Every element of the package has been allocated for the purposes agreed with WMCA, including supporting businesses, coordinating regeneration activity and delivering improvements to Dudley town centre
He said: "Ms Kumar has been invited to meet myself and senior leaders at Dudley Council so she can learn more about the different funding packages."
However, he accused the MP of using the issue for political gain rather than constructive dialogue.
He said: "I sense that she takes aim at the council more than her party colleague simply for point scoring, which does nothing to help the businesses involved."
Ms Kumar MP said she would welcome a meeting with Councillor Patrick Harley, leader of the council, to discuss the matter further.
She said: "I welcome the offer to meet the leader Councillor Patrick Harley to explain his neglect of the town and to discuss a wider range of opportunities for the people of Dudley."
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