TORIES today condemned a multi-million pound regeneration plan in an area of Huddersfield where many Asians live.
They went on the attack over a scheme to plough money into the town's Thornton Lodge area.
Party spokesmen said the move would benefit property owners financially at the expense of the taxpayer.
Tory councillor Khizar Iqbal claimed Kirklees Council action would damage race relations.
He said: "Sadly, it again falls on an Asian councillor to have the guts to say what many people are thinking, but daren't say because it is politically incorrect to state the obvious.
"I am getting tired of having to speak up about this council's politically correct actions which just do damage to all the good work we try to do to encourage community cohesion and reduce racial tensions."
The plan played into the hands of racists, he said.
Clr Iqbal said: "Many aspects of this scheme deserve credit, but there are many areas in Kirklees which need regenerating.
"It is wrong that homeowners in Thornton Lodge should benefit financially at the expense of others and because the resident population of the area is largely Asian this gives out the wrong message to the wider population."
Clr Ken Sims, deputy leader of the council's Tory group, said: "Of course the council should seek Government funding for regeneration and a Conservative-led council would be no different in doing so.
"But there needs to be a little more sensitivity about how and where that money is spent."
The scheme - announced last month and called Thornton Lodge Renaissance - will cover better housing, environment conditions, community facilities, jobs, education and training.
Clr Sims said: "If people have money for new cars and satellite or cable subscriptions, they clearly have the disposable income to maintain their own assets.
"The council should look after people in genuine poverty across the borough, not just those from ethnic minorities or from specific areas."
Councillors from other parties today condemned the remarks.
Clr Andrew Cooper, a Green councillor who carries the Cabinet's housing portfolio, said: "They're bonkers.
"This money is not made available for any racial group, it's for people who are in poverty and is directed to areas of need.
"Thornton Lodge meets all the criteria."
Liberal Democrat Clr Andrew Marchington, also on the Cabinet, said: "The council looks after people in genuine poverty across the borough, not just those from ethnic minorities or from specific areas.
"Neighbourhood Renewal money is being allocated on the basis of need, not political correctness."