Bar owners in the West Midlands have been warned of tough times ahead by an analyst at KPMG.

Ann Davies, the head of restructuring at KPMG in Birmingham, said: "Unsurprisingly, tourism and the leisure sector generally felt the effect of the war in Iraq, both on a national and local basis.

"The West Midlands is also showing signs of local issues of over expansion in the leisure, bars and restaurants, which could be worse hit if consumer spending becomes tighter.

"Any business relying on growth in this sector should, in my view, ensure that it has good fall back plans in place."