A NORTH-EAST city will be one of those hardest hit by public sector cuts, according to a leading think tank.

Centre for Cities has named Sunderland as of five cities it claims are particularly vulnerable, alongside Liverpool, Birkenhead, Swansea and Newport.

But Sunderland City Council chief executive Dave Smith challenged the centre's conclusions in a key note address at the report's launch in London.

The think tank's chief executive Alexandra Jones said: "Buoyant cities like Leeds and Bristol, which have been fast-growing and have lots of private sector jobs, are best placed to lead the UK's recovery.

"The UK cities most dependent on the public sector, and which have seen slower economic growth over the last decade, will find it more difficult to rebalance toward the private sector."

He said cities like Sunderland would need extra financial support as well as a "realistic" local plan of action.

Mr Smith, who also rejected claims that Sunderland's rate of business per head of population was the lowest in the country.

He said: "Sunderland has a much more substantial and diverse medium-to-large employer base than comparable cities.

"This provides about 40 per cent of all the jobs in the city.

"Nissan has grown to become the largest and most efficient car plant in the UK and the biggest exporter."

TUC General Secretary Brendan Barber said: "This report paints a mixed picture of how the UK is emerging from recession.

"It's great that some areas may be starting to bounce back but many towns and cities, particularly in the North, are failing to see any sort of recovery."