BUSINESSES in Hampshire would prefer to stay in the county, but they are prepared to move away if costs become too high or there is no space to grow.

Research by Hampshire County Council showed that there is strong loyalty to the Hampshire 'brand' but the high cost of housing, skills shortages, traffic congestion and the shortage of development land could ultimately force them to rethink their long-term plans.

The results of the Hampshire business Development Needs study were shared at a stakeholder workshop at Winchester Guildhall.

They showed that almost 40 per cent of businesses which responded would need more space in the next five years, with more than 90 per cent of these wanting to develop in Hampshire. There is a need to provide a range of different types and sizes of units to meet demand, with move-on premises for smaller businesses wanting to expand out of enterprise centres particularly needed.

As well as needing space to grow, Hampshire businesses want clearer information about the planning process and closer ties with district and county planners. They have indicated a willingness to become involved in any process to shape a strategy that will address the difficulties they are facing.

The county council's executive member for environment, Councillor Keith Estlin, said: "The county council and both Portsmouth and Southampton city councils, as strategic planning authorities, will be heeding these messages as the next generation of strategic plans for the county progresses.''