According to the latest SME Barometer survey by the GE Capital group, the UK’s small and medium-size businesses are planning to invest significantly over the coming year, while taking on extra workers. The survey, which covered 2,250 SMEs in seven European countries, found that UK companies planned to increase their capital investment by 12% — to £58.6 billion — over the next 12 months. They also intend to create more than 660,000 jobs over the next year, up 26% on the figure reported this time last year.

Ilaria del Beato, chief executive of GE Capital UK, said: “UK SMEs appear to have reached a ‘tipping point’ in their willingness to invest for growth and hire new staff. This is a true measure of economic recovery; it points to promising future growth potential, as greater investment should help to boost productivity.”