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A Conservative county councillor in Powys has denied any wrongdoing with his firm winning a contract to boost the fortune of two towns in the county.

Mark Barnes's Revive and Thrive will devise plans for Business Improvement Districts (BIDs) in Brecon and Newtown.

The awarding panel included fellow Tory councillor Iain McIntosh, representing Brecon Chamber of Trade.

A Labour councillor claimed it looked like "contracts for cronies", but Mr McIntosh said it was the best bid.

The towns are two out of 10 which will share £260,000 from the Welsh Government to explore the possibility of becoming a BID.

If local firms back the idea, they will pay a levy to fund activities such as marketing and promotion.

Mr Barnes, who represents Newtown on the county council, told the Local Democracy Reporting Service he would resign if there was "any hint" the contract was "not awarded fairly".

He said his company had already worked on similar projects in England.

"We were awarded the contract on merit and it's good that the work goes to a Powys company," he said.

But the council's Labour group leader Matthew Dorrance said: "The public needs to have confidence that the council is looking after the interests of the many not just the privileged few and that it's getting best value for money.

"To Powys residents, the actions of this Conservative and Independent-run council could easily look like it is awarding contracts to its cronies."

Liam Fitzpatrick, a former Independent member of the Powys cabinet, said giving a contract to a councillor "may send out the wrong message".

But Mr McIntosh said several organisations were involved in the awarding process along with the council, such as the Welsh Government and the Brecon Beacons National Park.

"The bid made by Mark's company was the best and cheapest," he added.

"It was tailored to Newtown and Brecon - they know the issues in the towns.

"The other bids were a cut-and-paste to fit any town throughout the UK."

Powys County Council has declined to comment.