Councillors agreed to invest in the flags after refusing a request to give 100 free flags away for people who entered the 'design the town flag' contest.

Instead the town council agreed to order 500 and sell them, in the hope it can make a profit from the memorabilia, similar to when it organised the Queen's Golden Jubilee in 2002.

Councillor Bob Ayer said: "I cannot see the justification of giving flags away out of tax payers money. I think the flags should be sold.

Cllr Clive Shore said: "I would certainly agree with that, after the 100 given away free of charge, how many other people would be interested in paying £5 for one?

"If we were to get 200 people to pay £5 it would pay for itself."

He added the people who had entered the competition were most likely to want to buy them, and the town council did not want to risk being left with an unwanted surplus.

Cllr Hilary Ayer said: "It is council taxpayers money and I don't think we should be giving things away out of council taxpayers money."

Members voted in favour of purchasing the flags by five votes to two.

The flag was designed by 84-year-old Anthony New, of Woodbury Avenue.

His design won the competition after a public vote, which was launched by the Petersfield Post last year.