BUSINESSES are failing to flock to Worcester's derelict buildings because they are not up to scratch, councillors have heard.

A new report found that despite buildings in the city lying empty, companies are instead heading for rival towns such as Droitwich and Tewkesbury.

The problem has partly been blamed on sites being too small and inaccessible.

But many landowners are also refusing to sell the sites, because of rising prices.

The report, commissioned by the city council, aimed to find ways to make these brownfield sites (areas previously developed) more attractive to firms, rather than surrendering more greenfield areas.

But Councillor Mike Layland, criticised the findings, stating that he was not convinced that the development of more brownfield sites would draw in new businesses.

"I would be more concerned if the brand new buildings standing empty in Warndon had a queue of people to take them over," the chairman told the development services policy and review committee.

"They have been empty for so long and with talk of a recession we could find ourselves with acres of new buildings and people won't want to take them up."

However, Coun Aubrey Tarbuck backed up the report, by planning and property consultancy Drivers Jonas, claiming the problem lay with the location of brownfield sites.

"People cannot get to work in Worcester," he said.

"The traffic is horrendous and so obviously people are moving out for work.

"You just cannot move in the city centre."

The city council is under pressure to find 75 hectares of land for employment sites, to fall in line with the county council's structure plan, and is currently falling short.

If it fails to pinpoint specific areas for development, builders will have the opportunity to dictate where they want to set up.

Councillors unanimously agreed on appointing a new economic development officer to encourage new businesses and asked for a report into greenfield sites.