HOME-buyers could bear the brunt of a new levy being placed on developers by Poole council.

Developers have been told they will have to fork out £1,000 per property for transportation improvements but there are fears the levy could simply be added to the property price.

The policy was approved by Poole council despite an unsuccessful bid by opposition Liberal Democrats for it to be thrown out and referred back for "proper consultation".

Cllr Mike Brooke, leader of the Lib Dems, said: "The documentation proposed is so flawed it has just got to go back."

The levy was not new and had been applied on an ad hoc basis since 2004, Cllr Ron Parker, portfolio holder for local economy, told the full council.

However, South East Dorset wanted to adopt the scheme as a strategy, which necessitated it being fast-tracked to cabinet and then council and not going through a committee as it should have, he said.

Developers were consulted on the scheme and only four replies were received, he said.

An annual increase of 500 homes over a four-year period from 2007-11 would raise £2 million, which was suggested should go towards four major schemes - Hunger Hill, Marston/Bay Hog, Civic Centre bus link and Oakley Hill bus priority.

However, Liberal Democrats were concerned that residents would lose out by the levy not being spent locally to mitigate a development's effects.

Cllr Tony Trent was among those who called for the money to be clearly labelled and used in the area it was levied from.

"If I were a developer I would be taking this council to the High Court, challenging what this money is being taken for," he said.

Cllr Mrs Ann Stribley, chairman of the planning committee said: "The examples given were examples of where the funding can be spent."

Cllr Parker added: "I agree we need to mitigate development at local level as well."

He pointed out this was an interim scheme until it was accepted by South East Dorset and applied to all councils in the region.