A row between two of Brighton and Hove’s most senior councillors over a £200 million housing contract could end in legal action.

Tensions rose between city council and Conservative leader Mary Mears and Labour leader Gill Mitchell after public accusations in a bad-tempered meeting.

During a fiery five-hour session Coun Mears said opposition members had told residents she had links with the Mears Housing group.

When pressed by shocked fellow members, she added that Coun Mitchell was “one-name mentioned”.

Despite Coun Mears later withdrawing the comment, both are now considering whether to take the accusations further.

The incident was one of many colourful outbursts that punctuated the meeting, with councillors labelling opponents “gutless”, “the devil’s workers” and “nuttier than a nutty fruit cake”.

Sources claimed tension has been simmering for months and boiled over due to the forthcoming local elections in May.

The issue between the two group leaders surrounded a tenyear £200 million housing maintenance contract signed with Mears Housing Group in July 2009 to carry out all work in the authority’s 12,500 properties.

During a debate at the full council meeting on Thursday, Coun Mears, who heads the Conservative minority administration, said: “I want it on the record that I have no link with the Mears Maintenance group.” She added some opposition members had been overheard on a train to London telling residents it was her family firm. When heckled for names by the opposition benches, Coun Mears said Coun Mitchell was “one name mentioned”.

Coun Mears later withdrew the comment about Coun Mitchell after discussions with aides but added she had sought legal advice and would be taking the issue to the local authority’s standards board.

Coun Mitchell refused to be drawn on the issue in the chamber, although it is believed she is also considering taking legal advice.

Speaking afterwards, she said: “I am going to consider what options to take with respect to the allegation that was made.”

Speaking after the comment, Coun Mears told The Argus: “I love politics but I do not do dirty politics.”

The meeting at Hove Town Hall was screened to the public live via the internet.

The full proceedings are usually archived for people to watch on the local authority’s website within 24 hours.

But at the time of going to print, the footage was not available and there were no indications of the full council meeting taking place on the relevant site.

The local authority is currently finely balanced with the Conservatives holding 25 of the 54 seats.

Labour have 13, Greens have 13, Lib Dems one with one independent and one vacant post. The May elections could see many seats change hands.

Speaking after the meeting, a council source said: “It really is a new low in behaviour.”

It was also suggested that the incident could end regular meetings between the two leaders unless senior officers intervene.

Much of the discussion was taken against a backdrop of councillors talking among themselves while others were on their feet speaking. Mayor Geoff Wells, who was chairing the meeting, asked a number of times for quiet so the speaker could be heard.

In another debate about the budget, Green convenor Bill Randall said: “I do not believe the Tories are evil but they are happy to do the devil’s work.”

He added: “Ultimately it’s up to the electorate to decide.”

In response Conservative councillor Tony Janio described the Green Party as “nuttier than a nutty fruit cake” adding: “Some times you have to make tough decisions.

Let’s hope that does not happen.”

Following on, Ayas Fallon-Khan, the Tory cabinet member for enterprise, employment and major projects, described the Labour party as “gutless” and “clueless”.

Labour councillor Warren Morgan asked the mayor to remind colleagues that such language would not be acceptable in parliament.