The news that Peterborough City Council had wielded emergency powers to release the funds for essential strengthening work on the relief road, being constructed by Persimmon Homes, came as a shock to ward councillors who, along with residents' groups, demanded to know where the money had come from.

And the speed of the decision, which was revealed in The Evening Telegraph, saw worried groups frantically e-mailing and phoning their ward councillors in search of some answers when the move was linked to the proposed Magna Park development, a huge freight exchange and warehouse development.

Stanground councillor Irene Walsh raised the funding issue at a meeting of the council's scrutiny committee on Monday evening and spoke directly to council leader John Peach.

Cllr Walsh said: "Residents have been very anxious about this and when something is rushed through it makes people suspicious, especially when a planning application is expected soon people can't help but make that connection.

"However, I met with one of the residents' groups this week to hear their concerns, and after asking the questions I now understand that the money has come from the Government's Growth Area Fund.

"I think if it had gone through a scrutiny meeting, or members had the chance to ask about or view a report about it, people would have been more satisfied and the problem would not have arisen.

"Early reactions from residents indicate that they feel their questions and concerns have been satisfactorily addressed."

And spokesman for Sense for Stanground John Riddington, who was one of the residents from Oakdale Avenue at the meeting, confirmed that the speed of the decision had set the group's alarm bells ringing.

He said: "The way it was revealed in The Evening Telegraph was a huge surprise.

"If the money is going towards making the single-carriageway wider we would not object, but if it is being used to help out Persimmon Homes or perhaps dangle a carrot in front of prospective developers we would not be happy."

And spokesman for Stand up for Stanground Chris Harper said they had grave concerns that the news was just "blurted out with no consultation".

He said: "If they (the council) had been more upfront about it, it would have been better as we acknowledge that the south of the city needs a bypass."

The council today issued a statement to confirm the £1 million came from the Government's Growth Area Fund.

A spokesman for the council said: "Naturally, the city council is aware of the feelings of Stanground residents about how any future growth in their area will be managed

"This was an opportunity for the city council to achieve cost-effective road improvements by contributing funds to an existing road construction project."

"This decision is in no way connected to the potential Magna Park proposal by Gazeley UK Ltd."