A planning application for a housing development in Blackpool could be decided by an independent panel after it was confirmed the developer made two donations to the local Conservative association.
Kensington developments denies any wrongdoing after it made two donations of £5,000 to Blackpool South Conservative Association.
The first was received 18 days before the initial planning application in July 2008, with the second donation coming a month before the revised second application in June this year.
The developer said it “makes a number of donations each year to various council and local community projects, charitable organisations and otherwise”.
Kensington is planning to build 570 homes around Moss House Road in the Marton area of the town after original plans to build 670 were scaled down.
Local protest group Save Our Moss said the payments call into question plans for the site and compromise the proposals. A statement said: “For the council to regain any credibility for the Strategy, we believe that they must regain this land from the developers. Only then will the trust of Blackpool’s residents be restored.”