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A senior councillor says concerns have been raised about the transparency of the process to approve the loans.
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ITV News filmed undercover with Reform councillors and candidates around the country.
Sir Olly Robbins was sacked as the top civil servant in the Foreign Office over the vetting of Lord Mandelson.
Alan Feeney was captured on undercover filming calling Asian homeowners "parasites".
Seven years after the party axed the project, Labour says the Welsh government should build the road.
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