Small businesses in the UK believe that growing exports will help increase their sales and profits, according to a survey by Lloyds TSB.

The survey revealed that business confidence is at its highest level since 2007, driven by the promise of growing exports as a result of a "rebound" in world demand for goods and a sustained fall in the pound.

"Business confidence is on the turn. After such dramatic lows, this revival is a real sign that businesses are genuinely hopeful for the future, and it is clear that many firms now see better sales and profitability on the horizon," said John Maltby, managing director of Lloyds TSB Commercial.

"But it remains a confidence tinged with caution. Concerns about home-grown demand are unsurprisingly weighing on the minds of business owners whose success depends on domestic markets."