The woman in charge of regenerating Streatham town centre has been disciplined for defending it from comments it was a “s*******”.

Town centre manager Angelina Purcell, employed by Lambeth Council to promote business growth and commercial development, was given a grilling by council bosses after she sent a 300-word open letter to stand-up Jo Brand’s agent, complaining the comment on BBC One’s Have I Got News For You had made her job “10 times harder”.

It is understood Ms Purcell, a former town centre manager for Croydon, was reprimanded for her actions last month and gagged from speaking to the press without council consent.

Miss Purcell’s reaction to Brand’s comments sparked national headlines and followed calls from MPs and businesses to improve the ailing high street – voted the worst high street in the UK in 2002 – amid a toxic combination of recession and budget cuts.

Sources said Ms Purcell now spends just half of her working week in Streatham because of additional responsibilities in West Norwood, Tulse Hill and Brixton, adding the town centre manager for Brixton left the local authority last year and has not been replaced.

The council said it would not comment on individual staffing matters and denied there were plans to further reduce town centre managers.

Ms Purcell was unavailable for comment as the paper went to press but business leaders and owners reacted furiously to the news, branding it “ridiculous”.

Lee Alley, chairman of the Streatham Business Board, said he would lead a protest outside Brixton town hall if Ms Purcell faced further criticisms from colleagues.

He said: “Angelina is bloody good. She put Streatham on the map. She has been doing her very best.”

Chris Baron, owner of an interiors and antiques shop on Streatham Hill, which closed two weeks ago, said he would have been “disappointed” if the town centre manager had not defended Streatham’s reputation.

He said: “I would like to know who her line manager is and I would point out they have made a grave error.”

Mel Larsen, leader of the Shop in Streatham campaign and organiser of the Streatham Festival, added: “We are very lucky to have such a passionate town centre manager who is willing to stand up for Streatham.”

Worried small business owners in the High Road were joined by Royal Bank of Scotland chief executive Stephen Hester on Friday to discuss ways the bank could help boost high street trade.