Confidence among small businesses rose to its highest level in three years according to the latest Small Business Index from the Federation of Small Businesses (FSB) The survey showed confidence rising across all parts of the UK and in most sectors.

The Small Business Index, the FSB’s measure of confidence, reached 15.9 points in the second quarter; 9.6 points higher than at the start of 2013 and the second highest reading since it began in 2010.

Alison Herbert, FSB development manager for Somerset and Wiltshire, said: “After five consecutive quarters of year-on-year growth, confidence is moving in the right direction.

“Small firms want to employ more people and grow their business. They want to export and expect turnover levels to increase.

“This is all good news, but we must not be complacent. The Chancellor must use the Spending Review to build on this optimism.”