REGENERATION leaders have promised changes are afoot after a study branded Blackburn and Burnley among the worst towns for shedding private sector jobs.

Thinktank Centre for Cities said East Lancashire’s two main towns had lost thousands of private jobs, while neighbouring Preston had been among the best for creating employment.

The study also found that Blackburn and Burnley had enjoyed a net gain in public sector jobs, making the towns vulnerable to looming Government spending cuts.

However, two regeneration leaders said recent changes in policy would ensure East Lancashire improves its record on creating private sector wealth.

London-based Centre for Cities, which studied data from 1998 to 2008, found that Burnley shed the equivalent of 7,500 private sector jobs in 10 years, while Blackburn lost 4,900.

In contrast, Preston gained 17,100 positions, with investors attracted by first-class rail and road links.

The study placed both Blackburn and Burnley in the national top 10 for towns that had lost private sector investment.

It said that Blackburn would need 7,300 more private jobs to meet the national average, and Burnley would require another 6,900.

Blackburn put on 4,500 public sector jobs between 1998 and 2008 and Burnley added 2,200 – but many of those could face the axe under the new coalition Government.

Alan Cottam, Blackburn with Darwen Council’s regeneration chief, said the borough had suffered a regional investment ‘bias’ tow-ards Manchester, Liverpool, Chester and Preston.

But he added: “The six boroughs of East Lancashire are now clubbing together to bid for money and investment, and I think it will be successful in creating private sector jobs.

“We will do everything we can to support that.”

Burnley counterpart Martin Smith said: “The problem with Burnley is that there have been so many big employers who have left Burnley and Padiham in the past 10 years, such as Michelin and Baxi, that we need to create thousands of jobs just to stand still.”

However, he said that establishing a direct rail link to Burnley and the University of Central Lancashire campus in the town would bring in much-needed private sector jobs.