Despite the economic gloom, business confidence during the first quarter of the year is on the up in the South East, according to the Federation of Small Businesses (FSB).

Its first quarterly Small Business Index for 2022 reveals confidence among the regions firm is up 9%. It stood at zero for the final months of 2021.

However, compared to elsewhere it is lagging behind the 15% average nationally. London's confidence stood at 43%.

The findings also reveal just under half (49%) of small business in the South East aspired to increase turnover and sales over the coming 12 months. While the number of firms fearing having to downsize, sell or close their business reduced from 18% at the same time last year, to 14%.

Ian Ross, the South East chair for the FSB, said “The findings demonstrate just how resilient businesses in the region are.

"While businesses responded positively to the reopening of the economy, there are still significant concerns. The problems of surging costs, high taxes and supply chain issues still linger; we know from discussions that many SMEs are still worried about the general economic climate. We hope the upward trend in confidence continues.

"Policymakers can help this by easing the tax burden and providing support to tackle surging energy prices.”

The investment intentions for South East businesses are above the UK average; the net balance of firms expecting to increase their investment stands at 13%, which is ahead of the UK average of 9%. For context, the lowest region for net investment is the North West (4%), with the highest investment intentions coming from the West Midlands (14%).