Reading this thread through, NOx has a valid point about everything being down to cash.
If you are serious about the reputation angle, your letter of complaint (not the money side) to the council, your husbands letter to the local hounds, and ultimately the Local Ombudsman make sense.
I would also take counsel from a lawyer as the histroy does suggest some vindictive behaviour from the developer and there may be due cause for some action there, in the form of a restraining order. However, you will need to discuss this with the lawyer and produce all the evidence - and in a calm manner............
If this is all about your right to grab money off your council as you see them as a bottomless pit, then ignore all the wise counsel from ABers and I, personally am out of it. The good news in that is that you have very little case for compensation on that score.