BERNARD MORLEY believes Chester have shown they can compete with the National League North's big-hitters as the Blues prepare for another clash with one of the promotion favourites.

Chester suffered a 2-1 defeat at league leaders Gloucester City on Saturday, former Blues striker Akwasi Asante scoring a late winner for the Tigers.

It was the second defeat of the campaign with Morley and co-manager Anthony Johnson's side also conceding a last gasp goal when going down by the same scoreline to Spennymoor a fortnight earlier.

Morley isn't fazed by the fact the Blues have a smaller playing budget than some of their promotion rivals like Gloucester and will relish the challenge when coming up against those sides.

"We have lost two games," said Morley told reporters after the Gloucester defeat.

"2-1 at Spennymoor in the last minute and 2-1 at Gloucester in the last minute.

"Both away games and two sides that undoubtedly are going to be up there come the end of the season.

"You talk about players' wages at Gloucester and arrogance about what they are on.

"We have been there as managers and had players that have been on that money so no excuses in terms of that.

"These sides have to deliver whereas little Chester on a small budget with players playing for free....there are no excuses, we will go head to head with any team in this league.

"And win, lose or draw, we will walk away with our heads high at times."

It doesn't get any easier for Chester who make the trip to York City on Saturday.

The Minstermen are again tipped to be title contenders but Morley is focussed on his side and trying to bounce back from the Gloucester defeat.

"Disappointed Saturday but we will move on to York away," added Morley.

"A tough game but it is down to us to get that confidence back in the lads.

"They will be disappointed but what we don't want to do is change our philosophy and just move on to Saturday."