BLACKBURN town centre could lose up to 14 per cent of its trade if a major new shopping centre is built in Preston, according to a report.

The £700million proposed shopping Tithebarn centre would increase the size of the city’s non-food retail area by 74 per cent.

Both Blackburn with Darwen and Blackpool councils have objected to the scheme, fearing it will wreck their town centres.

And now a new council report has underlined those concerns.

It says: “The floor space [of the Tithebarn] would be more than double the non-food retail floor space of neighbouring towns of Blackburn and Blackpool.

“Blackpool and Blackburn town centres may experience trade loss of between seven and 14 per cent in non-food goods turnover by 2014.

“The assessments supporting the proposals are neither robust nor up-to-date, exaggerate the expenditure available to support the proposed development and under-estimate the serious impact it would like have on the vitality and viability of other centres.”

Work to build the Preston development could start in 2010, if planning permission is granted next year.

However, there is a strong chance that the Government could call in the plan for an inquiry, such is the level of opposition from neighbouring councils.

Objectors believe the proposal goes against the North West Development Agency’s strategy for Lancashire, which has Preston, Blackburn and Blackpool on a relatively equal footing.

The report to Wyre Borough Council says: “It is considered that this [the plan] places too much emphasis on the role of Preston after Manchester and Liverpool.”

The Tithebarn development would have a large Marks and Spencer and John Lewis stores, a multi-screen cinema, more than 20 restaurants and cafes and 52,000 square metres of shops.

There will also be a 2,700-space car park and 400 apartments.