Small business confidence plummeted to a new low in 2011 as firms were hit by high inflation, rising utilities bills and reduced consumer spending power.

That is the verdict of the latest Federation of Small Businesses (FSB) Voice of Small Business index.

The index features the opinions of some 1,600 businesses across the UK and Kent and posted the lowest score since it started in 2010.

With the Coalition Government looking to businesses to spearhead economic recovery through growth and job creation, this weak sentiment will make dismal reading.

In Kent and Medway, the 2011 Autumn FSB Small Business Barometer showed reduced confidence with fewer firms expecting improved performance in 2012.

With one in eight (12.6%) firms expecting a worsening economic situation in the coming three months, the FSB is calling on the Government to boost small business confidence.

Looking forward, the group with nearly 7,000 members in the county expects lower inflation to boost confidence, encourage cash-strapped consumers to resume discretionary spending, and improve business margins and profits.

It also welcomed government measures such as encouraging bank lending and boosting enterprise investment. But it called for urgent implementation of other promised reforms.

Roger House, chairman of the FSB in Kent and Medway, said: "The message is clear - things are going to get worse before they get better. But, we are hopeful that as the inflationary pressures lessen in 2012, businesses will become more confident."

He urged the government to "quickly put in place the actions that it has promised. Small firms have heard what the government has to say but are still waiting to see implementation".

He called on ministers to create "a dynamic business landscape in which our entrepreneurs can grow and flourish".