THE problem in recruiting key workers is a major thorn in the side of businesses in Basingstoke, a survey has revealed.

Two thirds of organisations questioned said they find it hard attracting new staff and noted that this is affecting the quality of service being provided.Firms also admitted having to turn business away because of a lack of staff.

Although few companies were prepared to suggest they would have to move out of Basingstoke in the near future, the results indicated that decreasing quality and rising prices may eventually lead them to relocate to somewhere more competitive.

Jeff Grainger, of Portsmouth Business School who conducted the survey on behalf of the borough council, said: "Firms have indicated they might have to turn down contracts. In terms of competition, it's something that's not desirable. We want firms to grow and expand."

The key workers' survey was sent to more than 5,000 organisations in the area, with 418 responding to the questionnaire across different sectors.

As expected, the survey found that recruiting staff was more difficult in Basingstoke than other areas.

Jeff said: "There is evidence the problem is more difficult locally than elsewhere. Is it something we need to worry about? Yes it is."

He added that Basingstoke was a victim of its own success. "All the area around here has grown and expanded quite dramatically over the past few years. It's a case of dealing with that increasing demand."

The results show recruitment and/or retention is more difficult in the public sector.

To tackle the problem, a wide range of solutions are being looked into, including the provision of more affordable housing to buy and rent, council initiatives, a need for differential pay scales, and firms being asked to consider training schemes and re-training.

A key worker housing study into proving affordable housing by Weatheralls is also being conducted and is expected to be completed next month.