Business confidence in the South East is "grinding to a halt" according to the latest survey by the regional branch of the Federation of Small Businesses (FSB) - which is calling for the national insurance increase to be scrapped.

It latest Small Business Index for the region says confidence slumped in the last quarter of 2021 - fuelled by uncertainty prior to Christmas over the rise of the Omicron variant.

By the end of the year confidence was neutral compared to post-lockdown highs of +27% in the second quarter of 2021 and +12% in quarter three.

The report's findings paints a gross profit picture that is evenly split. At the end of last year, 37% reported an increase in gross profit for the quarter, compared to 36% who reported a decrease. This shows little change from the previous quarter.

The net balance of firms planning to increase investment stands at +10%, nearly half the national average of +19%, the lowest net figure in the country. The FSB says despite this disparity, more firms intend to increase their investment when compared to the national average, with 26% in the South East planning investment compared to 22% nationally.

Deborah Turner, South East policy chair for the FSB, said: "The results are disappointing as it reflects a decrease in business confidence when businesses should have seen a Christmas boost. It makes for a grim picture when firms factor in the future national insurance increase, plus inflationary pressures on business costs.

"These findings make it necessary for the government to cancel its proposed national insurance tax increase and to consider widening relief to small businesses. Whilst small businesses plan to expand and employ more staff, these positive developments threaten to be derailed by an April tax grab that our economy can ill afford."