A survey of more than 1,000 small businesses has identified slight increases in general confidence levels over the past year - but a lukewarm reception to government economic policies. Nearly half of those questioned now feel optimistic about the future, compared to only 36 per cent in July 1998.

But the Business Pages survey also found that only two per cent were very satisfied with the government's management of the economy.

The survey carried out this October identified the principal measures likely to increase business confidence as a solution to the Millennium bug (43 per cent) and the introduction of new government initiatives (49 per cent). The survey also identified key anticipated trends over the coming year.

The vast majority of small businesses, though, say they are doubtful that the growth levels of the 1980s will be repeated.

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