BAR wars look set to break out as two major pubs go head-to-head in a battle for customers.

Yates's Wine Lodge in Blackburn will offer £1-a-pint after it undergoes a major facelift.

It follows the successful £1 million Postal Order pub - just a short stagger away in Darwen Street from Yates's - selling beer for as little as 89p-a-pint.

Landlords of town centre pubs are bracing themselves for a knock on trade as they struggle to keep up with the beer battle but customers are already raising a glass.

Yates's says it will reopen as The Blob Shop and it follows a successful pilot venture in Manchester.

The company said the pub will be based on a concept although it is not yet revealing what form it will take. It is believed an Australian-style theme is being considered for at least one of its north west pubs. A spokeswoman for Yates's in Manchester said they were not cutting prices to compete with the Postal Order as the scheme has been in the pipeline for several months.

But an insider at the Blackburn pub said: "Yes, our trade has been hit by the Postal Order during the week but when we re-open it will be like nothing you've ever seen."

A spokesman for the Adelphi Beer Engine said: "Our business has been affected. How can an ordinary pub compete with prices like that?

"They're just slitting each other's throats and it will be interesting to see how long it can all last."

A spokeswoman at Sam's Bar said: "We have our own faithful customers who have not been tempted by these gimmicks."

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