What do they consider a small town in England?

The news keeps referring Ipswich, England as a small town
and that prostitute were taken from the redlight district.
In most small towns in the usa there’s no way there would a
known red light district unless prostitution was legal.Maybe
Nevada. Is prostitution legal anywhere in England?

Does England have a Red light district?

When I go there on vacation, I may get a little horny!