BRISTOL'S most successful businessman Peter Hargreaves pulled no punches with his withering assessment of politicians in Bristol in an exclusive interview with the Evening Post yesterday.

He claimed that the city council has done little to help commerce flourish in the city and even made it difficult for his stockbroker firm Hargreaves Lansdown when it was looking to expand into a new headquarters on the Harbourside.

But yesterday senior Conservative and former Lord Mayor Peter Abraham threw down the gauntlet to Mr Hargreaves.

"As a councillor, I find it incredibly insulting for someone to come along and label us idiots," Mr Abraham said. "My challenge to Mr Hargreaves is to come and stand for election and see if he can do a better job than the politicians."

The comments prompted debate on the Evening Post's website and there were even calls for the businessman to stand for mayor.

The financial guru is one of the richest men in the country and has amassed a personal fortune of £570 million thanks to the incredible success of the company he set up with his business partner and current Bristol City chairman Stephen Lansdown 29 years ago.

But on the day the 63-year-old announced his retirement as chief executive, he launched a no-holds barred attack on Bristol's civic leaders. His fire was directed at all three parties and derided their record on planning, transport and helping business in the city.

Mr Abraham, himself a former businessman, was stung by the criticism.

He said: "I have been a councillor for a long time and at times I have been the council's severest critic. I do find it pretty insulting for someone to come along and describe councillors as a bunch of idiots who have never done a decent day's work in their lives.

"I went to work when I left school at 15 as a trainee manager in a department store and even though I am over 70, I am still working today. I work as hard now as I have ever done as a consultant in local government."

Mr Abraham also alluded to comments from Mr Hargreaves earlier this year that he was thinking of moving abroad as a result of Labour's new 50 per cent tax rate for the super rich.

He said: "Should we really take notice of a man who is planning to live overseas? This is a personal challenge to come and join us on the council.

"I personally don't work out of need, I am a councillor because I think I can put something back into the city. Just because Mr Hargreaves has put so much into the local economy it doesn't give him the right to make false statements. Maybe he should stand for council and show us how it should be done."

Helen Holland, the leader of the Labour group on the council, was also upset by the criticism.

"It is a pity that someone who has come from such a successful business feels this way. Bristol is starting to play an important role on both the regional stage and national stage.

"We have been through a difficult period but the council has always done its best to support businesses in the city and to help important employers such as Hargreaves Lansdown."

She added: "In recent years the council has become much more aware of its role in terms of helping businesses thrive and a very strong partnership has been developed.

"We have done everything possible to make sure the voice of business is heard in the city and we have also done our best to attract potential investors.

"The message on transport is one that has been heeded by the council and there have been successful bids to central Government to help improve transport infrastructure in the city."

Yesterday, it emerged that Bristol has been named as one of the most competitive cities in the country for business.

The UK Competitiveness Index 2010, published by the University of Wales Institute, ranked Bristol as the most competitive English city.

The report described competitiveness as 'the ability for an economy to attract and maintain firms with stable or rising market shares in an activity, while maintaining stable or increasing standards of living for those who participate in it'.

And Liberal Democrat Barbara Janke seized on the survey to hit back at Mr Hargreaves.

She said: "In the light of today's announcement, it seems rather sad that a business leader should choose to undermine the reputation of the city in this way.

"We are pulling out of recession. This is an excellent place to invest and do business and the great majority of businessmen and women will, I am sure, testify to the support and co-operation they have had from the city council."

And in a swipe at Mr Hargreaves she added: "My experience of other cities is that business leaders promote confidence in their cities to potential investors and partners. They all recognise that cities compete for scarce investment and funding for major projects and jobs. They go out to bat for their city as a united force with other leaders from the private and public sector, putting differences aside because the stakes are high and the future of their city is everything, particularly in cities struggling to recover from the recession.

"Equally, in difficult economic times increasing numbers of people are dependent on council services, whether they are unemployed or in need of care and support services. It seems to me to be unfair on council employees to be criticised by Mr Hargreaves in this way and damaging to morale.

"I know many people value the services they receive from the council. Peter Hargreaves, naturally, has his own point of view about his experience of working with the council over the years. But is he really saying that more than 16,000 people who work for the council are nothing but a bunch of idiots?"

The comments sparked a typically lively debate on the Evening Post website yesterday with readers evenly divided on the issue. However, one commentator even went as far as calling for Peter Hargreaves to stand as mayor.

Jan Ormondroyd, the chief executive of the council, said: "Employers are attracted here because they know the city attracts the skilled people they need to be competitive. It's got the right buzz, quality of life and cultural offer for the young and ambitious, with many graduates of the local universities staying on and seeking a career here.

"But it's not just about graduates and high-fliers. Many successful small businesses are thriving and expanding, often around the larger firms, providing a wide range of services from construction to catering.

"A buoyant economy means more jobs and better prospects for all Bristol residents. Home-grown Bristol enterprise is a big part of what makes our city so strong."