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A council watchdog committee has given the green light to payments of up to £155,000 to a city centre business group after rejecting claims it was getting preferential treatment.

But the council's economy scrutiny committee found a cabinet report which outlined the lacked sufficient detail - including the crucial fact 75 per cent of the payment is a loan to be repaid.

The Broad Street BID ceased on March 31 but its successor organisation, Westside BID, has yet to be confirmed by a ballot of businesses in the area, due to be held later this month.

In the meantime, it is unable to raise money but needs to pay for street wardens, taxi marshals, street cleaning and other services.

Protracted negotiations over the territory to be covered by the new BID led to the delay, meaning the BID will now be funded through the 'limbo' period.

But other business improvement districts, including those covering Acocks Green, Sutton Coldfield, Soho Road, Erdington, Northfield and Kings Heath were concerned the Westside BID was getting a grant, as well as up to £10,000 funding for its ballot costs, which was not available to others.

It was only under cross examination cabinet member for economy Tahir Ali revealed the majority of the money was a loan and would be paid back by Westside BID.

He said: "This is about ensuring the ongoing activity on Broad Street, the street wardens and so on, continues and making sure there is no gap."