THE internet is failing to deliver for businesses in the south east, according to the latest Lloyds TSB Commercial Business in Britain survey.

Almost two thirds of businesses in the south east advertise on the internet, but just six per cent report a significant increase in business.

According to Lloyds TSB, the problem can be explained in part by companies’ reluctance to receive orders or payments online.

Just one in 10 firms in the region is taking web payments - the same as the national average – while 65 per cent in the south east are unable to receive web orders.

Richard Iwinski, south east area director for Lloyds TSB Commercial, pointed out that the statistics hold true across all sectors.

"Hotels and caterers, the biggest advertisers on the web, are widely ranked among the biggest web winners," he said. "However, despite more hotel and catering firms being able to take online orders and payments than any other sector – 43 per cent and 18 per cent respectively – the survey reveals that they are suffering the same lack of response as their counterparts in other sectors.

"The construction industry is the least web-friendly with only half – 53 per cent – advertising on the internet. A massive 90 per cent of construction firms are unable to take payment online and almost three quarters – 74 per cent – report an inability to receive orders via the web."

Almost a third of local firms – 31 per cent – dismissed the web entirely, saying that online promotion had not increased their business. But the proportion of companies that found trade improved slightly was marginally higher at 39 per cent. The pragmatists are dwindling, with 23 per cent saying it was too soon to tell.

Mr Iwinski concludes that potential web benefits are slipping through the net for UK businesses.

He said: "Firms are more than aware the dot.com bubble has burst and that the internet is not the solution to every business problem. Despite this, it is important to remember that there are gains to be had and the prevailing air of caution shouldn’t prevent companies from maximising online opportunities."

The survey revealed that of those firms fighting shy of the internet, 26 per cent abstain because they cannot quantify the benefits. Just 12 per cent of south east businesses are nervous of trading with unknown parties whilst eight per cent are deterred by the cost of investment.

Local companies not currently using the internet are overwhelmingly undecided on its potential. Over half – 57 per cent – said they did not know if the web was part of their business plan for the coming 12 months. Twenty-three per cent had decided against, and a fifth are planning to get online this year.