Following a recent economic study commissioned by the BBC the North East and Midlands are the least resilient areas to economic shocks and planned cuts by the coalition Government are likely to have the biggest effects on bingo clubs in these areas.

The Government has dismissed the importance of the findings suggesting that there has always been a divide between the north and south. However it is argued that planned cuts fail to take account of the dangers and will make the situation worse.

Last year the bingo industry was lobbying the Government over the hike in bingo tax and managed to get a partial reversal down to 20 percent. At the time many felt this was not far enough and that as online bingo operators based offshore did not pay any UK tax and the majority of land based gambling operations pay only 15 percent, the Government should review all taxes associated with gambling. Many bingo supporters also argued that with bingo clubs being a ‘soft’ form of gambling why it is so unfairly taxed. The views have somewhat moved as politics have unfolded this year. The consensus is that while online bingo is likely to be regulated and taxed bingo clubs are unlikely to get a break in the tax rates. Lobbying the current government at this time is somewhat of a waste of time and resources.

With the potential of a difficult economic few years ahead as the Government makes debt reduction a number one priority, profitability of bingo clubs has bingo an important factor to bingo operators. Property prices remain in danger of falling further and unemployment is likely to increase to record levels over the next couple of years meaning that people have less money to spend on leisure activities like bingo and the latest reports are suggesting clubs in the north will suffer more than those in the south.

In recent years the North East has been one of the worst areas for bingo clubs closing with many of the Top Ten Bingo clubs in the area being casualties. Industry experts are expecting more club closures in the north and midlands than the south as this pattern continues due to the planned cuts in public services.

According to the research Middlesbrough is the most vulnerable area followed by Nottinghamshire and Stoke-on-Trent. The Experian report provides an idea of what may happen given further economic cuts and how each local authority can withstand changes in the economy.

The study which looked at four key themes (business, community, people and place) found that there was a clear north-south divide. Factors such as the amount of vulnerable and resilient industry within an area, the life expectancy of residents, earnings of workers, unemployment and crime rates were analysed.

It found some of the most resilient areas in England are Elmbridge in Surrey, St Albans in Hertfordshire, and Waverley in Surrey.

Deputy Prime Minister Nick Clegg attacked the Experian research suggesting a north-south divide was already well known.

He added that the large spending cuts to be announced in October should be seen as part of an effort to correct the economy. During the speech on the government spending review, he stressed the need to "balance the books".

"A thriving economy cannot be built in the long-term on shifting sands of debt," he added.

Sir Stuart Bell the Middlesbrough's Labour MP claimed Mr Clegg had "misconstrued" the economy.

"The reason there's a north-south divide is because we lost our major industries in the 80s, like steel and shipbuilding, and jobs from those sectors went into the public sector.

"We recalibrated the economy along those lines to the benefit of the North East."

He added the government would be making a "fundamental" mistake to think the private sector would create jobs in the North East to re-balance the planned job losses.

He explained: "You don't go from the public sector to the private sector; you go from the public sector to the dole queue."

The Experian research suggests Middlesbrough will be the least resilient to such public sector cuts.

The North East as a whole does not fare well in the Experian study.