CONFIDENCE among small businesses has slumped to its lowest level since 2013, new findings show.

The Federation of Small Businesses Index for the first quarter of 2016 shows confidence declining across the UK .

The FSB says the findings underline the importance of measures to support small firms announced by Chancellor George Osborne in last week's Budget and the need to maintain support in the face of tough economic headwinds.

The business body said lower confidence is partly due to uncertainty about the strength of the UK and global economy, but also new challenges facing small businesses , including the National Living Wage, pensions auto-enrolment and plans to introduce mandatory quarterly digital tax reporting.

Sandra Dexter, FSB vice chairman, said: “Small business confidence has clearly faltered, which is why the welcome small business focus in the Budget is so important. We need a renewed push for growth and productivity – with policy makers delivering a sustained package of support for ambitious small firms.

“The Budget included a number of important measures to help smaller businesses, particularly changes to business rates which will see many small businesses taken out of paying rates altogether. Delivering on tax simplification measures will be vital - as will be pressing ahead with new investment in much needed infrastructure. Taken together these measures should help to boost confidence and help small firms to grow and succeed.”

The FSB report also reveals the first fall in the value of exported goods since 2012, due mainly to the fall in growth across both emerging and developed economies. The FSB said the Government should pull out all the stops to support British exporters.

One a positive note, the FSB survey revealed improving access to finance for small firms, with a record percentage accessing credit in the past quarter.Nearly one in ten firms applied for peer-to-peer lending or crowdfunding - more than double than under a year ago.

Meanwhile , a survey by manufacturers' organisation EEF, shows that a record number of firms are looking to recruit apprentices this year.

EEF said 79 per cent of firms plan to recruit a manufacturing and engineering apprentice, while 45 per cent will hire an apprentice in roles such as IT, marketing and management.

Andy Tuscher, EEF Yorkshire director, said: “Manufacturers have a long track record of championing high quality apprenticeships and ensuring that young people enjoy every opportunity to start a satisfying and well-paid career."

To find out more about apprenticeships in manufacturing and engineering, visit eef.org.uk/apprentices.