It was reported that Bill Ibberson, managing director of Younger Homes (Northern), was calling for a police investigation following allegations that the council's regeneration manager, Adrian Rose, had allowed "false evidence'' to be placed before a public inquiry in a bid to force through a compulsory purchase order.

Younger Homes and Calderdale Council have been fighting a long-running battle over rival plans to develop Sugden's Mill, a plot of land in Royd Street, near Brighouse town centre.

The council and its development partner CDP of Elland want to develop a new swimming pool, retail units and a road bridge on the site where Mr Ibberson's company owns much of the land.

Leader of the opposition Liberal Democrat group councillor Janet Battye (Calder) said: "These allegations must be thoroughly investigated, if not by the police, then by a reputable person independent of the council and free from any possible bias. It may be that both investigations are needed.

"Bearing in mind the serious nature of these allegations and the seniority of the officers accused, the council must be seen to be open and above reproach in the way this matter is dealt with.

"I have spoken to the council's chief executive, Paul Sheehan, on this matter and put these points to him. I believe they will be acted upon.

"Issues like this show that the council, as the guardian of public assets, needs to be as open as possible in its dealings. There also needs to be strong political leadership. Unfortunately these are both matters about which have raised concerns in recent years.''

The leader of the council, councillor Ann McAllister, said yesterday: "I am in receipt today of the letter from Mr Ibberson, sent to all 51 councillors. I have instructed the chief executive to put in place a full and thorough investigation."

A spokesman for the council said Graeme Creer from Weightman's solicitors in Liverpool has been appointed. The firm of solicitors has a range of experience in local government.

Councillor Paul Rogan (Rastrick, English Democrats) said: "I am hoping to call for a vote of no confidence in Calderdale's Conservative-run cabinet at Wednesday's full council meeting.

"I think that the cabinet has for many years been presiding over what appears to be a flawed organisation which has encouraged little or no proper interest to be taken in the regeneration of the second largest town in the borough.

"It is on its watch that this has happened and they must now accept full responsibility and restore the public's faith by
offering their collective resignation.''

The leader of Calderdale's Labour group, councillor Tim Swift (Town) said: "Clearly if we are not satisfied with the answers we get then there should be further appropriate investigation.

"The people who I feel sorry for in all of this are the people of Brighouse who were promised a new swimming pool as part of the proposed development many years ago and which has not taken place following all the legal challenges.''