The future of the Preston Vision Board, which attracts regeneration cash into the city, was thrown into doubt when Labour councillors demanded more politicians be added to the restructured board.

Coun Jack Davenport (Lab) called for council leader Ken Hudson (Con) to chair Preston Vision Ltd, with Labour leader John Collins also a member.

But the move, which was defeated by a vote of six to five at Preston Council's scrutiny committee, would have gone against North West Development Agency (NWDA) rules, which say the board needs to be headed by a private sector figure.

The NWDA is set to pump millions of pounds into Preston, with Preston Vision acting as vehicle for attracting the cash.

Coun Collins said the board, with only one Preston Council member, would have a "democratic deficit", while Coun Matthew Brown (Lab) said a private sector chairman could have a "conflict of interest".

But council chief executive Jim Carr said Preston Vision was not a decison-making body – decisions would be taken by the council's cross-party city centre committee.

He said: "Effectively, the Vision Board is under our control because it can't do anything without our agreement.

"We need to attract and maintain the private sector participation and the private sector are very easily put off by politicking."

Council members on Preston Vision will include Coun Hudson, Tom Burns from Lancashire County Council and Cliff Hughes from South Ribble Council.