SMEs in the region are leading the way when it comes to basic digital skills, according to the latest research.

Some two-thirds of small to medium firms have the skills, outperforming all other regions in the UK, according to the latest Lloyds Bank Business and Charity Index.

It says by embracing digital skills, UK businesses could generate an additional £85 billion in turnover.

In the south east, 70% of businesses are already using social media to promote their business, giving them the opportunity to tap into new markets.

Yet only 24% are gaining a transactional benefit from trading online domestically. While this figure sits just above the UK average (21 per cent), when it comes to targeting international markets, only 9% of south east firms use online channels to trade overseas.

The report also found that only five per cent use digital channels to search and discover growth opportunities for their business and three quarters (75%) of south east SMEs are investing nothing to build their digital skills.

It’s worrying to see that there is still a huge proportion of businesses that are not investing in digital at all

For those businesses embracing advanced technologies including cloud IT, online accounting software and digital training tools there is the opportunity to generate more than £100,000 in extra annual turnover compared to those who have none.

Tara Foley, Lloyds Banking Group’s ambassador for the south east, said: “SMEs in the region are a step ahead of their counterparts throughout the rest of UK, showing a solid foundation of digital skills. But there are still untapped growth opportunities, with our research showing that businesses that embrace advanced digital capabilities could generate an additional £100,000 in turnover.

“Digital skills are one of the main factors driving business productivity, so it’s worrying to see that there is still a huge proportion of businesses that are not investing in digital at all, which runs the risk of holding the region back when it comes to boosting local economies."