Councillors said they were not keen to give immediate support to a £15k grant from Rother District Council, allocated to market the town, if it was to be channelled through Rye Partnership.

Group leader Cllr Granville Bantick made a proposal that the council should wait for the results of an Audit Commission investigation into Rye Partnership before a decision is made.

He later withdrew the proposal in favour of the matter being passed on to full council for decision.

Cllr Mary Smith, speaking from the gallery, voiced her concerns, saying: "As a council tax payer I would want that money to be channelled through an elected body such as Rye Council and not an unelected group who are being investigated by the Audit Commission."

Rye Partnership chairman Cllr Keith Glazier said: "We have nothing to hide. certain people requested that the Commission look at our affairs and they are obliged to do so.

"It is an outrage that at a time of uncertainty for business's and tourism, the actions and narrow mindedness of a group who purport to be supporting Rye could result in a large sum of money being lost."

He added: "The marketing group a sub group of the Partnership, after consultation and a series of discussions decided on a marketing solution that involved Rye Town Services working with 1066 marketing to address the needs of tourism and businesses.

"A bid was made and accepted by Rother District Council who suggested it should be matched with a £5k grant from the town, this could now be lost if other councillors take the same view at the next full council meeting where a final decision will be made."