A growing number of small businesses plan to take on new recruits in the short-term future, according to an index by the Federation of Small Businesses (FSB).

The survey of almost 3,000 firms shows that 15 per cent want to recruit in the next three months, while 11 per cent welcomed new staff members in the last three months.

The FSB said the data was evidence of confidence returning to the sector. It also pointed to figures showing more firms are being approved finance while two-thirds expect to grow in the next 12 months.

John Allan, national chairman at the FSB, said: "Once again we see confidence on the up – and small firms leading the way in job creation.

“Small businesses are pushing us further towards economic prosperity and it's so important to retain this momentum. That more than half of firms want to grow is a sign to the chancellor to keep the focus on business.”