The all or nothing rule for the Freeman of Hartlepool title was only introduced at the last minute after a proposal by Hartlepool's Labour group leader, Councillor Jonathan Brash, at a private meeting.

Opponents claim this is because Labour believed that Mr Mandelson – who stood down twice as a Cabinet minister while Hartlepool's MP – would be otherwise rejected.

But Hartlepool Labour MP Iain Wright says Lord Mandelson did an "outstanding job" and that it is "entirely appropriate" he be given the honour.

However, would-be MPs from the other parties have hit out.

Liberal Democrat Parliamentary candidate Reg Clark said: "I feel that Peter Mandelson took a lot more out of Hartlepool than he contributed.

"If there had been a vote on each individual nomination for freeman and he received a majority of votes then good luck to him.

"But there wasn't and I think this epitomises the way that the Labour Party has been taking the Mickey out of Hartlepool for as long as I can remember.

"They knew exactly what they were doing and I think it is a disgrace."

Councillor Steve Allison, who is standing for the UKIP party, said: "If I was one of the other nominees then I would feel slightly cheated as putting them together in one group devalues the honour."

Meanwhile, Alan Wright, the Conservatives Parliamentary candidate next year, said: "I think it is disgraceful that Peter Mandelson should be given the distinction, given that he had to resign twice from the Government.

"The problem with voting in block is that the people who deserve to be nominated are included alongside someone who is not worthy of being Freeman of Hartlepool.

"By that logic you may as well nominate John and Anne Darwin too."

Mr Wright added: "My suggestion would be for the council to let the public decide on the nominations."

But Iain Wright said: "I think that Peter Mandelson, during his time as Member of Parliament for the town, did an outstanding job.

"The fact that the council wishes to recognise that with this honour is entirely appropriate."

He added: "The idea that people who have served the town should be given this historic honour has been looked at in full by members of the sub committee and that seems to be the right process to have been taken.

"It would appear that the right procedures have been followed."

A Hartlepool Borough Council spokesman said they "were satisfied" that the proper democratic procedure was followed at the meeting.

The other approved freemen nominations are Sky Sports television presenter Jeff Stelling, Pansies breast cancer support group founder Isobel Wilson, Families First founder Wendy McLoughlin and Hartlepool Voluntary Development Agency project manager Peter Gowland.