TRADERS and shopkeepers in the streets around the market area of Blackburn are struggling to stay in business, says a council report.

It reveals that more than 37 per cent of tenants who rent shops from the council are behind with their rent. The latest statistics show that arrears total £127,000.

More than £152,000 is owed in rents from industrial estates, almost 19 per cent of total revenue.

Blackburn Council collects around £2.6 million a year in rent from businesses with £1 million coming from the shopping centre and central car park.

The bulk of the other £1.6 million comes from industrial units, town centre shops and markets.

The bleak picture is also reflected in the number of empty stalls on Blackburn's indoor market.

Around 13.5 per cent of stalls on Blackburn and Darwen market are currently empty. The vacant stalls cost the council almost £110,00 each year in lost revenue.

Unhappy traders claim recent increases in rents and service charges are scaring traders away from the market.

Concern about the level of arrears for council properties led to a new policy to control the collection of rents last spring. The council also decided to monitor the situation throughout the year.

The latest report to the council's development services committee reads: "Concern remains that a number of shops are experiencing serious trading difficulties, particularly along Penny Street.

"The arrears monitoring report reflects this concern."

But town hall bosses are quick to point out the situation is made to look worse than it actually is because the number of bills sent out in recent weeks.

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