Shrewsbury shopkeepers who face having their stores bulldozed to make way for a £5 million housing regeneration project could be offered alternative sites to trade from.

The three traders in Moston Road, Harlescott, hit out at Severnside Housing bosses earlier this week after being offered a combined compensation package of just £16,800.

They say they could be forced into bankruptcy because the money is not enough to set up a business elsewhere in the town.

But Tim O’Shea, Severnside Housing head of services, said: “As well as discussing financial compensation, we have also offered to work with interested shopkeepers to find alternative premises. This offer remains and we have already supported a number of the businesses to explore some options.

“The offer depends on the availability of suitable premises, but it remains for those who wish to pursue it.”

Councillor Peter Nutting, leader of Shrewsbury and Atcham Borough Council, said: “What we are trying to achieve is a change to that area of town. I do believe that dropping the shops from the scheme is the best way of dropping the culture in that area.”

But Sunil Patel, owner of a convenience store in Moston Road for more than 25 years, said: “They haven’t offered us any shops. They would only be offering us shops which are empty or closed and you have to ask why they closed down in the first place.”

He added: “They should pay us money to start our own choice of shops not their choice of shops.”

Severnside is awaiting a council decision on its proposal to revamp the area with 38 affordable homes.