by Trevor Sturgess

Small firms are more confident following the end of political uncertainty, according to a survey, but they are reluctant to take on more people.

The Kent Small Business Barometer, compiled from nearly 200 firms by the Federation of Small Businesses, found that one in five forecast improved business prospects, the highest level for two years.

However, despite an increase in the number of businesses reporting stronger sales, forecasts for job increases remain unchanged, with most blaming red tape for their reluctance to take on new staff.

The higher cost of fuel, energy and waste disposal top their list of concerns because they impact on cashflow and place greater strain on finances.

Roger House, FSB chairman for Kent and Medway said: "Now the election and composition of government is finalised, we are looking to our newly elected parliamentarians to honour their commitments to provide an environment where small businesses - who together contribute half of the UK's GDP and employ nearly 60 percent of the private sector workforce“to prosper."

The FSB is pinning its hopes on the new coalition cutting the cost of regulation and blocking further business legislation.