The Federation of Small Business have released a survey of 2,600 SME's, showing a loss of confidence in trading conditions, in ten out of twelve regions, with lack of funding specifically causing a huge barrier to growth.

The incidence of loan refusal has climbed to 42.4% from 40.6% in the previous quarter, in an environment where over 50% of these companies are looking to expand within the next twelve months.

The Chairman of the FSB, John Walker was not surprised by these figures with the double dip recession, spanning three quarters, throwing up flatline growth.