THE CBI in the South East has called on the Government not to overlook the needs of businesses in the region, despite research which shows the South East and London are outperforming the rest of the UK in terms of new business start-ups.

Small businesses are responsible for half of all jobs and wealth and are fundamental to future economic success.

But while the South East has seen a 15 per cent increase in businesses since 1997, in Wales the figure was just two per cent, Scotland recorded only a five per cent increase and Northern Ireland six per cent, leading to fears that resources could be diverted away from our region.

Malcolm Hyde, CBI South East regional director, said: "Although there may a growing divide between the South East, London, and the rest of the UK, businesses across our region are also under pressure.

"The entrepreneurial spirit may be alive and well in the South East, but growing and sustaining a business in our region is an increasingly difficult job and one which the Government and its agencies must recognise and act upon as it is this region that drives our country. There is no room for complacency.

"At a time when the global economy is becoming more competitive it is important that the Government recognises, and plays to, our strengths – one of which is the South East."