Blackburn amongst most vulnerable to cuts

A new study of small businesses has warned that northern towns and cities are the most vulnerable to the government's austerity measures - highlighting Blackburn as one of the most at risk.

The study suggests that some SMEs are likely to be more vulnerable to changes in their local market brought on by job losses, welfare cuts and constrained wages than others. SMEs in Cambridge, Crawley and Reading are likely to be best insulated against further cuts, while SMEs in Hull, Liverpool and Blackburn may feel the effects of their customers spending less money in their local economy far sooner and far stronger.

Alexandra Jones, chief executive of Centre for Cities said: “Small and medium sized businesses are the lifeblood of the UK’s economy but Small Business Outlook flags that many have been particularly affected by the impact of the recession on their local economies. They will face challenges ahead as further austerity measures have a knock on effect on local demand for their services.