NEWPORT is one of the areas in the UK with the highest proportion of empty shops.

Research carried out by the business research company Experian ranked Newport third for the amount of vacant retail floor space. It found 36 per cent of its floor space is vacant.

Councillor Ed Townsend, Cabinet member for economic development and regeneration said: "My deduction is Newport is one of a number of cities affected badly by the recession."

Newport ranked behind Gateshead in Tyne and Wear who were first with 52 percent and Walkden in Manchester with 40 per cent came second.

The only other Welsh region to figure in the top ten was Milford Haven, which ranked eighth with 30 per cent of its floor space being vacant.

While some shops are expected to be filled even more are expected to go out of business.

Taking into account known retail administrations and banckrupticies Experian predict the amount of vacant floor space in Newport will rise to 38 per cent before the end of the recession.

Cllr Townsend said: "We have drawn up an action plan which will specifically target problem areas and will be investing resources to improve the overall appearance of the city centre for businesses, retailers and residents.

"Clearly, the delays to the Friars Walk scheme have created particular issues for the bus station and John Frost Square which prior to the recession, were expected to be under development this year.

"We are investing in a programme of works to improve the appearance of both these areas and are relocating the popular Farmers Market to John Frost Square to encourage more shoppers to this part of the city centre.

"We are also contacting owners of unsightly buildings in the city and will not hesitate to take legal action should this be required."

There are also plans to improve signage around the city, particularly around the High Street Arcade and Indoor Market.