DESPITE falling global markets and a crisis in the eurozone, confidence is starting to return to Hampshire businesses.

That's the encouraging outcome of the first ever HWB Economic Confidence Audit, a survey of Hampshire business leaders carried out by one of the region's largest independent accountants.

After years of credit crunch, recession and economic contraction, now more than two thirds of those questioned declared themselves confident or very confident about their business' prospects in the coming year.

More than half forecast that turnover would grow in the coming months, with 18 per cent expecting to see significant increases.

But the job market looks set to stay tough for the foreseeable future with almost two thirds of employers saying they do not expect to hire any staff over the next year. Of the 30 per cent that are planning to grow the workforce, numbers will be low with just one or two expected to join.

On a more encouraging note, less than 4 in 100 bosses anticipate making any redundancies.

HWB director Richard Hurst said: "Businesses are beginning to feel more positive but are not able to predict too far ahead. This means now is a really crucial period. Businesses need to be ready for the upturn that will be felt in the region's economy once this renewed confidence starts to feed through to increased activity.

"After several years of concern, it's good news that business leaders here are starting to see positive signs again. The trick is now to be ready to make the most of it."

Many took the time to add personal comment showing they still do have concerns. High taxes and low customer demand,  stagnation in the wider economy and soaring fuel costs are still major hurdles to business growth.

Given the opportunity to be Chancellor for the day, many of those surveyed opted to cut VAT from its new level of 20%, with some calling for it to go as low as 5% to stimulate growth. Others called for reductions in fuel duty, red tape, corporation tax and national insurance.

One executive voiced the concerns of many, when they said they wanted to: "Cut red tape and reverse employee protection laws so once again a manager can manage his business."

Richard Hurst said: "There's clearly a lot of frustration out there, with business groaning under a twin burden of regulation and taxes. The message to the Chancellor is clear - tackle these issues and take the shackles off the wealth creators in our economy."

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