A decision is looming over whether L&G will be allowed to develop the Temple Island scheme in Bristol

Legal & General is embroiled in a row over a property development amid claims that a council will underwrite it and is avoiding scrutiny.

Discontent about the Temple Island scheme in Bristol is growing as a decision looms on whether to let the insurer develop the site. Opposition councillors have accused Marvin Rees, the Labour mayor, of withholding documents that spell out the deal’s terms.

It threatens to become an embarrassment for L&G chief executive Nigel Wilson, who has embarked on a series of developments in cities such as Cardiff and Newcastle.

As well as 400 homes, the Temple Island plans include a 345-room hotel and offices.

Anthony Negus, a Liberal Democrat councillor, said the terms of the deal meant that Bristol taxpayers would, in