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Blood-stained axe found in Midlands settlement (8)

Ross

I believe the answer is:

redditch

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'midlands settlement' is the definition.
(I've seen this before)

I don't understand the rest of the clue.

Can you help me to learn more?

(Other definitions for redditch that I've seen before include "Worcestershire new town" , "Town S. of Birmingham; CD dither (anag.)" , "Midlands settlement" , "English town" .)

I've seen this clue in The Independent.
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