8 September 2010 Last updated at 04:56 ET

Business Link Northwest to cut 194 jobs in Preston

An organisation which supports new businesses has announced plans to cut nearly 200 jobs in Lancashire.

Government funded Business Link Northwest, based in Preston, currently employs 338 people. It wants to make 194 redundancies by next March.

The plans follow reductions in the regional development agency budget. They are also ahead of the government's spending review in October.

The organisation said it wanted to deliver a more "streamlined" service.

Peter Watson, managing director of Business Link Northwest, said: "We know there will be changes to the delivery of government business support and a white paper will be released in the autumn setting out the coalition's proposals in more detail.

"The proposed restructure will allow us to be in a position to work with the government and the emerging Local Enterprise Partnerships in order to allow for a smooth transition.

"In the meantime Business Link will continue to offer support to North West companies, and those considering starting a business."

Staff were told of the plans on Tuesday and formal consultation has started, the organisation said in a statement.