BIRMINGHAM City’s early season nightmare continued here last night when they were beaten by arch rivals Aston Villa in the first leg of their Littlewoods Cup local derby duel. Blues battled bravely against their First Division opponents but they were rocked by goals from Kevin Gage and Andy Gray in the first-half and never recovered. Despite a spirited second-half display Villa won with a little to spare and now take a two-goal cushion into the second leg at Villa Park next month. Blues’ boss Garry Pendrey took a gamble by drafting in four youngsters after his side’s dismal run in the Second Division. But it was Villa who got off to a fine start when they took the lead after just five minutes. Blues failed to clear a Thompson header from Gray’s comer on the right and Gage nipped in to slam home the loose ball. Blues kept battling and after 12 minutes a blistering Ian Atkins’ shot from just outside the area flashed past the post. Villa goalkeeper Spink was forced to dash off his line in the 25th minute to punch away a menacing Wigley cross as Blues searched desperately for an equaliser. But Villa ended the half firmly in control and they snatched a glorious second just a minute before the break when Gray fired home a screaming 20-yard drive after Clarkson had only half-cleared a Gallacher cross. Just four minutes into the second half Villa should have added a third when a mistake by Overson set up Platt whose shot was turned away by Godden for a corner. Six minutes later substitute Whitton replaced Robinson in an attempt to boost the Blues’ attack The switch signalled a spell of Blues pressure as Pendrey’s men fired by their home crowd fought to get back into the game. But it was Villa who came closest to scoring in the 77th minute when Mountfield saw a close-range shot hit the underside of the crossbar before Godden gathered the ball safely.