Support payments only made to five businesses affected by pedestrianisation works in Wolverhampton

Council chiefs said 74 businesses had been identified on and around Victoria Street, which has been undergoing a £15.7 million revamp in a bid to boost footfall.

But of that figure 52 engaged with a consultant and only 11 showed financial evidence of a drop in turnover, with "disruption payments" being made to just five.

It has led to criticism of the Labour-run authority by Conservative councillors in the city, who accused the authority of "dangling a carrot" to traders before pulling it.

Reasons for the lack of payment include businesses not meeting eligibility requirements, with some providing "erroneous information" and others ceasing to trade.

Councillor Sohail Khan, who scrutinised the payment scheme, said: "We've gone from 50-plus to 11, and then to five. I think the way they've handled it has been poor.

"We understand the council has no legal requirement to make these payment, but it's not a legal issue it's a moral and ethical issue for businesses who have been trading in the city centre for many, many years.

"We should have actually supported them and made it as easy as possible for them to get support and I think we've made it as difficult as possible. They've just dangled the carrot in front of them and said 'come and grab it'.

"It's such a shame it's come down to this because a lot of businesses have folded and a lot are going to go under without support. How many of them are going to see this development when it's completed?"

Councillor Khan said he understood the payments were public money and every penny had to be accounted for, but said the authority's bosses should have showed "empathy" and make the process as easy as possible.

Councillor Steve Evans, cabinet member for city environment and climate change, said: "We understand the challenges businesses face and have been working with traders throughout the works.

“So far, businesses that have been able to provide evidence of a loss due to the works have received a goodwill business support payment. This shows that we are empathetic towards their needs, while balancing that with our duty to protect taxpayers’ money, especially during difficult times like these.

“We will continue to work with affected businesses to see what further support we can provide as we complete the investment of more than £20million of Future High Streets and Council funding in the much-needed regeneration of the west side of the city centre, including the development of a new entertainment and events Box Space. The finished schemes will transform the area, increase footfall and boost the local economy.”