More Firms Want To Create Jobs - FSB

The latest Federation of Small Businesses' (FSB) Small Business Index shows an increasing number of businesses want to create jobs in the next three months.

This marks the third consecutive quarter of job creation in small firms and provides yet more signs that confidence is returning and that momentum behind economic growth is being maintained.

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.

John Allan, National Chairman, Federation of Small Businesses, 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."

(CVS/CD)