WORCESTER City Council has responded to a scathing report by the Ombudsman by offering compensation to a resident who complained a bungalow was built without his knowledge.

The council's standards committee agreed to pay a maximum of £750 of taxpayers' money after the Ombudsman found that the authority was guilty of maladministration. The extent to which the council has been left with egg on its face is demonstrated by the fact that this was the first full Ombudsman report into its activities for 15 years.

The planning department's procedures and practices will now be reviewed to ensure the same thing does not happen again.

The issue dates back to September 2003 when an unidentified resident, of Claines, Worcester, objected to an application for planning permission to build a bungalow on land next to his home. The resident complained and the plans were altered but he was not warned that planning permission had then been granted and the bungalow was built.

The Ombudsman reported: "The first he knew of the nature of the amendment was when building work began. He said he would have preferred the development to be as originally proposed." Philip Betts, the council's deputy chief executive, told the committee: "The problem was not whether it was right or wrong to consult (after amendments were made) but whether that expectation was communicated.

"The objector didn't realise things had changed since the consultation."

Planning officer Paul O'Connor said there was no further consultation so as not to raise hopes that any more changes could be made.

Several councillors said they felt uneasy about accepting the Ombudsman's report, and added they were unhappy that a compensation figure of £750 had been recommended.