5 steps to ... relocating small firms from a renewal area

Stuart Watson, Regeneration & Renewal, 23 May 2008

"Some can move five miles without problems, but others may struggle if they move 100 yards, or it may be important for them to be in a cluster of similar firms," says Peter Skates, development director at urban regeneration company New East Manchester.

2. Identify and provide alternative sites. Many businesses will require assistance to secure new accommodation, particularly if they are to be retained in the regeneration area. "If you are genuine about carrying out significant relocations (rather than simply displacements), then you have to secure development sites and vacant units on the open market," advises Gareth Blacker, development director at the London Development Agency.

3. Provide business support. To survive and thrive despite the disruption of a move, firms often need the help of business managers who can advise on access to grants and other support services. It may even be advantageous for regeneration agencies to pay reasonable legal and surveying fees for relocating businesses. When the LDA was carrying out relocations from the Olympic site, it set up a helpline run by the Royal Institution of Chartered Surveyors (Rics) to offer firms independent advice.

4. Manage compulsory purchase carefully. If there is no doubt that the compulsory purchase order is serious and will be carried out within a fixed period, then businesses will engage with the process at an early stage. "If local authorities are as flexible as possible in making advance payments to firms, that gives them the capacity to move," adds Blacker.

5. Maintain an after-care service. If business support officers are available in the years after a move, relocated firms have a better chance of surviving and generating more jobs as they expand.

- More information Call the Rics compulsory purchase hotline on 0870 333 1600 or download a guide from www.rics.org/compulsorypurchase.