Bigger sales and profits, with fatter pay packets and more jobs are expected next year by upbeat experts in the South East.

An end-of-year survey across Kent and the rest of the region found that businesses are feeling a lot more confident about business prospects across the region.

The latest Institute of Chartered Accountants in England and Wales (ICAEW) UK Business Confidence Monitor revealed that the South East and London have recorded the largest gain in confidence quarter on quarter.

The professionals expect bigger sales and higher profits (both up five per cent), with wage growth at 1.4 per cent the highest projected increase in the country.

Average basic salaries are expected to grow by 1.4 per cent over the coming 12 months compared to a UK average forecast of 1.1 per cent.

More jobs are also forecast, with headcount expected to rise by 1.4 per cent over the next 12 months, compared to a UK average increase of 0.8 per cent.

Furthermore, staff retention in the South East has been above the UK average as the region’s firms have cut headcount by 1.3 per cent compared to a UK average decline of 2.2 per cent over the last 12 months.

Fay Webster, ICAEW South East regional director, said: "Encouragingly, firms in the South East are expecting the main indicators of business health to begin to grow over the next year.

"We have seen gross profits and sales volumes nosedive over the past 12 months, but now firms say they are expecting to see a return to growth in the region next year."