Yarm needs to stop living in the past.

That is the view of two businessmen who have hit out at councillors' comments that the town has too much of a reputation for restaurants and nightlife.

Howard Eggleston and Jonathan Hall say town councillors should work with licensees to move Yarm forward. They reckon councillors are doing more harm than good by calling for more retail space.

Instead, they say, members should be leading moves to bring CCTV to the town and improve the image, such as better Christmas decorations.

The two men, who jointly own The Hide bar and grill in Fairfax Court, spoke out after a D&S Times article in which councillors said they would prefer Yarm to be famous for quality shops, not just trendy restaurants and pubs.

Chairman Coun Liz Marsden said retail space was diminishing and added: "We can't afford to lose any more."

Mr Eggleston disagrees: "The town is not full of restaurants, but without the caf-bar society there would be less retail trade because visitor numbers would fall.

"Our daytime trade is bouncing and people often come back in the day because of what they have seen during an evening."

Mr Eggleston cited the example of Fairfax Court, which he bought 12 months ago when it was "a fading shopping centre." It had no anchor to draw people in, he said. At one point, traders counted just 30 people going through on a Saturday.

He launched The Hide and other shops followed, including the post office. "That was the coup. For the post office to come on board gave us huge credibility. The court is now full with a waiting list."

Mr Eggleston said of the council: "Members should take a more modern view on what Yarm has to offer for the future and not keep harking back to the past.

"They need to embrace the new lifestyle as a means of bringing in more business and quality shopping. We are not in the Seventies. We have to keep up with the more vibrant towns around us."

The council, he said, should be concentrating on issues such as CCTV and anti-social behaviour. Security was a big issue, and he dismissed the Christmas lights as a disgrace.

Mr Eggleston said many traders agreed with his views and he urged the council: "Work with us to take Yarm forward. Retail space is not diminishing. It is on an even keel. It is not all pubs and cafes and bars.

"The council is doing more harm than good with its comments. People from other areas think they are having a down on the town they run."

"Let's sit down and talk for the good of the town," said Mr Eggleston.

The council's vice-chairman Philip Addison insisted there had to be balance between night and daytime trade.

"When our views were expressed everyone spoke from the heart. It was felt there was too much emphasis on night-time business," he said.

Coun Addison said the question of a meeting with licensees and restaurateurs would be a matter for the whole council