THE Federation of Small Businesses has welcomed new figures from the government showing a significant increase in the number of small businesses.

Figures published by the Department of Trade and Industry show there was a net increase of more than 20,000 firms operating in the UK in 2001 compared to the previous year.

The current number of businesses stands at 3,746,340.

Small businesses account for 99.8 per cent of the business population, employ more than 12 million people and contribute more than £1 trillion in turnover.

FSB regional chairman Peter Blackburn said: "Small business is the backbone of the UK economy and our 5,900 members in Wiltshire and Somerset make a significant impact on our local economy.

"Government has to recognise the importance of small firms and put in place policies that aid business development not hinder it."