BUSINESSES are being forced to move as part of a £16m town centre regeneration scheme.

Derwentside District Council has issued compulsory purchase orders on the owners of three properties, containing six businesses, in Front Street, Stanley.

The council will pay the market value plus compensation for relocation, then spend a further £500,000 demolishing the buildings.

The idea is replace the narrow alley between the buildings with a new walkway, connecting Front Street to a new bus station.

But established firms are concerned about the effect the move will have on their businesses.

Rob Craig, owner of the Tattoo Studio, said he had been offered only £800 for the remainder of his lease, which ends in May.

He said: "It is abysmal. The last thing I want to do is move out.

"I do a lot of big jobs, which takes far more than one session, so people have stopped coming because they think we are moving.

"Stanley does need regenerating, but what the council is doing is putting a sticking plaster over something that needs major surgery."

Mr Craig said the compensation he was being offered would not cover the costs of relocation, fresh advertising and building up a new client base.

As well as the Tattoo Studio, the order will affect Willow Burn Charity Shop, NS Bennett Chartered Surveyors and Estate Agents, Provident Personal Credit, The Northern Echo and Stanley Advertiser and William Hill.

A spokesman for William Hill said: "It is disappointing to have to move from a tried- and-tested location in the town centre, especially when we recently had it refurbished.

"Fortunately, we managed to find premises further down the street in plenty of time."

Stephen Bennett, owner of NS Bennett, said he was surprised the council had issued orders when negotiations between it and the businesses affected had just started to try and reach agreement on the sale of the properties.

"We have bought another building on the other side of Front Street. We will have a new high-tech office."

Councillor Alex Watson, leader of Derwentside District Council, said the buyout was essential.

He said companies would be given a fair price for their properties and given help to find new premises.

Coun Watson said: "It is not without sadness that we do this and it is not something we relish. It is not a decision that was taken lightly, but the town centre needs regenerating for all of the businesses in Stanley town centre."