A BLACK cloud was hanging over a community last night as speculation mounted that its biggest employer was about to move out.

Fears were growing that the town of Spennymoor was on the verge of a crippling economic blow if the rumours that Black & Decker was about to abandon the town turned out to be true.

Community leaders said such a decision would be one blow too many for an area already reeling from a succession of job losses in recent months.

Micro-chip manufacturer Fujitsu and electrical firm Sanyo, both on Aycliffe Industrial Park, Newton Aycliffe, closed recently. In Spennymoor there were 460 redundancies at Rothmans, 650 at Electrolux, and more than 50 at Thorn Lighting.

Spennymoor Town Council's leader Coun Bill Waters feels the closure of Black & Decker, thought to be considering relocating outside the UK because of the Government's refusal to join the euro, would be devastating to an area which has already suffered thousands of job losses.

Coun Waters, who is also cabinet member of Sedgefield Borough Council for regeneration, said: "It is time the Government held a referendum or made up its mind about joining the euro so people and firms know where they stand.

"Black & Decker has always had a tremendous relationship with the councils and I'm sure it will look at many other factors when determining its future.

"If it was to leave I would be devastated, the mood of the town would be at an all time low.

"It would be terrifying for local families, not just workers at Black & Decker but the dozens of smaller firms that work with them."

Coun Brian Stephens, leader of Sedgefield Borough Council, said he doubted the euro would prove a deciding factor in Black & Decker's decision. If it was to close it would be terrible for the wider community," he said, "but in this area we've had a lot to face and have had to have a fighting spirit, I'm sure we will make the best of whatever happens."

Workers at the plant are frustrated by the latest announcement.

A truck driver at the plant for 13 years said he was so sick of the rumours of closure he is considering leaving.

He said: "If I could find work anywhere I would take voluntary redundancy and get out because of the uncertain future, I worry because I have a young family."

A colleague, who works on the factory's professional DeWalt operation, said: "The euro rumours seem like the latest in a series of reasons to leave the region and something of an excuse."