UK small businesses continue to show a sustained recovery says FSB

The survey of almost 3,000 businesses shows 15 per cent wish to take on more people in the coming quarter and 11 per cent have increased staff in the previous three months. In each of the English regions firms responding have created jobs, with an above average increases in the West Midlands and east of England with 14 per cent. In addition the report shows a marked improvement in the number of businesses accessing finance, with more firms approved for applications. While the environment remains challenging, this is a welcome sign that credit conditions are easing for small firms. However the survey reveals that the perception persists among businesses that credit availability and affordability is poor, meaning more needs to be done to restore confidence in the banks. With just days to go before the Chancellor delivers his Budget the FSB has urged him to build on this confidence. His announcement should focus on enterprise, completing reforms in key markets notably banking and energy and putting in place a supportive tax environment that encourages small firms to invest, create jobs and grow. Other key findings show: • Confidence rose to 35.7, breaking the record score of 33.5 in Q3 2013 • Almost two thirds of small firms expect to grow in the next 12 months, and one in four plan to increase the amount they invest in their business • 25 per cent of firms expect to see an increase in export activity in the coming three months and 10 per cent report growth since Q4 2013 • More firms expect to see increases to profitability and turnover in the coming three months John Allan, national chairman of the FSB, said: "Once again we see confidence on the up – and small firms leading the way in job creation. There is no doubt small businesses are pushing us further towards economic prosperity and it's so important to retain this momentum. That more than half of firms want to grow is a sign to the Chancellor to keep the focus on business. "I believe small firms can do more too – for instance helping long term unemployed youngsters back to work and as the economy continues to improve, boosting wages for the low-paid. With more businesses planning to invest, this can only be good news for the economy and the Chancellor needs to build on this in the Budget."