A Birmingham Liberal Democrat politician has been reported to the local government standards watchdog for allegedly abusing his position as a city councillor.

Shaukat Ali Khan is said to have used his membership of the council to promote his personal business affairs, contrary to the local authority code of conduct.

It's alleged that Coun Khan (Lib Dem Bordesley Green) took out an advert in the UK Small Business Directory to imply his Small Heath building firm is approved by Birmingham City Council. But the firm, SK Builders, is not on the council's list of approved contractors and has no special approval.

The advert, on the business directory's website, was spotted several weeks ago by an official in the office of Sir Albert Bore, the leader of the council's opposition Labour group.

Arrangements were made by Labour to persuade Ulfat Hussain, one of Coun Khan's constituents in Small Heath, to refer the matter to the Standards Board of England for investigation.

Sir Albert, who said he thought it was better if the complaint came from an "ordinary" member of the public, said he had no idea whether Mr Hussain was a Labour Party member or sympathiser.

The standards board has the power to admonish, suspend or sack any councillor found to be using membership of a local authority to gain a financial advantage.

In a letter to the board, Mr Hussain accuses Coun Khan of infringing the council code of conduct by using his position as a councillor to gain an unfair financial advantage. He is also said to have damaged the reputation of the council.

Mr Hussain said he was concerned that members of the public reading the advert would be misled into believing that SK Builders was endorsed by the council. He alleges Coun Khan has obtained a pecuniary advantage through deception contrary to the Theft Act.

Coun Khan is also accused of damaging the reputation of the council by running his business from his Somerville Road home without planning permission.

Sir Albert said: "I would be extremely concerned if any councillor were claiming something that was not correct. Coun Khan's firm is not on the council's approved suppliers list and the standards board must examine this as a matter of urgency."

Coun Khan was unavailable for comment. However, John Hemming, chairman of the council Liberal Democrat group, said he did not believe the complaint would be upheld by the standards board.

Coun Hemming (Lib Dem South Yardley) said all builders have to obtain buildings regulations approval from the council for work they have carried out. It would not be misleading in those circumstances for Coun Khan to state that his work was approved by the council.

Coun Hemming added: "It is obvious Labour don't think this is a very serious matter, otherwise Sir Albert Bore would be happy to put his name to the complaint."

Coun Khan was first elected in May 1999, as the leader of the People's Justice Party. The PJP disbanded last year, with all members transferring to the Lib Dems.