A NORTH Yorkshire business leader is calling for Government to simplify taxes, raise skills and tackle poor payment practices as research among small businesses reveals new heights for growth and investment intentions.

The Federation of Small Businesses' latest Small Business Index has revealed that small business confidence has picked up markedly in the second quarter, with growth and investment intentions reaching new highs since the Index began in 2010.

Findings in the latest research show that businesses view their prospects for the coming months very positively as nearly two thirds (65.3 per cent) of small businesses aspire to grow moderately or rapidly in the next three months - the highest figure ever seen in the index.

Simon Williams, North Yorkshire regional chairman for the Federation of Small Businesses (FSB), said: "The results of the Q2 Small Business Index are very positive and show the major role that small businesses play in the growth of the UK’s economy.

"It is critical the new Government continues to develop the right environment to support businesses planning to grow, invest and take on new staff in the next 12 months.

"In the Budget and its upcoming Enterprise Bill, Ministers should prioritise supporting small business growth, simplify business taxes, raise skills and tackle poor payment practices."

This quarter’s index shows the highest ever number of firms planning to invest in their business. Nearly one third of businesses (32 per cent) plan to increase capital investment over the next 12 months. The balance of firms that have employed new staff in their company has risen to 8.9 per cent a sharp increase from 2 per cent reported 12 months ago.