Businesses in the south east want to improve their green credentials - but say cash issues and red tape are getting in the way.

Think tank, the Tenon Forum, said 44 per cent of bosses of small to medium-sized businesses in the south east said they had not yet put in any measures designed to help the environment, such as recycling and improving energy efficiency. Some 21 per cent of these said they had no plans to do so in the future.

A quarter of bosses quizzed believed the financial cost of adopting environmentally-friendly measures outweighed the benefits for the business.

A total of 65 per cent of the bosses said Government efforts to drive green business behaviour were motivated by the desire to win votes, rather than out of genuine concern for the environment.

Half the bosses agreed that the UK tax regime should be used to encourage green practices among businesses.

Many thought green initiatives enhanced their reputation, with nearly a quarter agreeing that adopting environmental measures gave business a competitive edge.

Andy Pear, director at Tenon, said the research showed that nationwide £3.1billion had been spent by small to medium firms seeking to improve their green credentials.

He said: "It’s clear that UK entrepreneurs feel strongly about green issues and rightly so.

"Many small businesses are keen to exercise their green credentials and to reduce their carbon footprint but this Government is simply making it too difficult and too expensive for them.

"Thousands of pounds worth of green taxes are stretching SMEs to their limit and with the Government advocating green business practice so vehemently, it’s crucial they find ways of making this easier and suggest viable ways to do so.

"While most support implementing policies that reduce their environmental impact, they also cannot do so alone. Entrepreneurs need the Government to motivate and reward best environmental practices so that green behaviour also makes a genuine difference to their bottom line."

The findings came from a six-monthly YouGov survey of 1,000 bosses. The Tenon Forum Think Tank was set up by accountancy firm Tenon.