SMALL firms in Lancashire will find it harder to survive in 2000 than they did last year, according to a leading accountant.

Blackburn-based Diane Eatough, president of the North West Society of Chartered Accountants, said that the general impression of a strong economy distorted the true picture in Lancashire.

"The retail sector in Lancashire has been hit hard and while specialist engineering firms are managing, others are finding it very hard going," said Mrs Eatough who works for PM&M.

Her comments came following a survey by the institute which found that 85 per cent of accountants believed interest rates would be higher at the end of the year and more than half believed sterling would continue to strengthen.

More than 60 per cent of chartered accountants who were questioned said the outlook was significantly less favourable for small and medium sized firms than for other sectors of the economy.

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