ONE in four shops in Blackburn town centre is empty or boarded-up, a new report has revealed.

And the report by The Local Data Company (LDC) said in Accrington, 22.5 per cent of stores have no one in them.

Burnley had a 19.2 per cent vacancy rate, up two per cent from the first half of 2010.

The LDC said it feared the situation could get even worse, with higher VAT, inflation and public spending cuts affecting northern towns worse than those in the south.

Researchers found that both Blackburn and Accrington were among the 15 hardest-hit North West towns.

In the six months to December 2010, Blackburn had 25.5 per cent of its shops empty, an increase of 8.5 per cent on January to June 2010.

Accrington recorded a 22.5 per cent vacant rate, up 6.6 per cent on the previous six months.

Labour councillor Dave Harling, the man in charge of town centres on Blackburn with Darwen Council, said Blackburn’s rate was partly down to empty shops as retailers move with the new market.

He added: “I think there is a big squeeze on our economy locally, with spending cuts and VAT going up, and a lot of shops will be damaged as a result.

“There is not as much money being spent and I worry things will get worse.”

However, Conservative Peter Clarke, deputy leader of Hyndburn Council, said: “The policies from national Government, like VAT going up and spending cuts, are here to make things better.”

He said the council had helped to improve Accrington’s Victorian arcade and the market hall.

Gary Kingdon, of Badger Books, in Keirby Walk, Burnley, said: “It is the toughest trading environment for about 30 years.”

LDC’s Matthew Hopkinson said of East Lancashire’s town centres: “They will never go back to pre-recessionary times.”