A town councillor has said he is “flabbergasted” that a football club has not been made to pay back an £80,000 grant.

Councillor Duncan Kerr said the whole issue surrounding the payment to The New Saints Football Club was “rather troubling”.

His comments came as it was confirmed Shropshire Council – which awarded the money in 2012 - is “taking steps” to recover the money which was supposed to be paid back to a third party – Oswestry Town Council – at a rate of £16,000 per year.

Cllr Kerr said: “It causes concern that we haven’t see a copy of the written agreement.

“They [Shropshire Council] owe it to us to give us a copy, yet they still haven’t.”

Cllr Kerr called on the town council to write again to Shropshire Council to get answers over what has happened.

The money was awarded by the now defunct Oswestry Joint Economic Board to allow the football club to pay for new seating at its Park Hall ground to meet UEFA regulations to compete in European competitions.

But it was revealed earlier this year that despite the clause no money had been paid back.

At last week’s town council meeting, Paul Wiseman, who made the initial revelations earlier in the year said he is “totally satisfied” with the way the town council has acted.

He added: “However, it leaves Shropshire Council with a dilemma – if not it is a not a legacy grant then surely it is state aid. If it is state aid then the guidelines mean it is unlawful state aid and the council has effectively gifted £80,000 of taxpayers money to a football club, a limited company, owned by a multi-millionaire.”

Mr Wiseman also asked the town council, as a taxpayer, to instruct its legal team to recover the money owned.

Clerk to the town council, David Preston, told members last week that Shropshire Council was investigating but that its solicitors had said it could take no action currently.