Smaller businesses in the West Midlands are generally optimistic about the year ahead - but remain sceptical about Government schemes designed to help them, according to a new survey carried by Halesowen-based chartered accountancy firm Nicklin LLP.

More than half of those polled (53.12%) expected business to either be a little or a lot better in 2011-12 than it was last year, while 25% expected it to stay the same. Almost 60% reported that business in 2010-11 had either been a little or a lot better than the previous year, indicating further signs of recovery.

By contrast, just 12.5% and 9.37% thought business would be a little or a lot worse in 2011-12 than it had been last year.

When asked if Britain was heading for a double dip recession, 50% answered 'no', while 21.9% answered 'yes' and 28.12% were unsure.

Continuing to look ahead, 62.5% saw an improving economy as the main business opportunity in the year ahead, compared to 9.37% who foresaw an increase in the availability of skilled workers, with 28.12% thought there would be other opportunities.

However, there was a general feeling of scepticism about some of the recent schemes introduced by the Government, with plans to force all employers offer an employee pension scheme coming in for particular criticism. More than half (53.12%) believed the scheme would simply create more red tape for smaller businesses, while 34.37% were unconvinced that it would work, even though they thought it was a good idea in principle. Just 12.5% thought it was a good idea that would work.

Plans to increase bank lending to businesses were also met with cynicism, with 53.12% believing they would not make any difference at all, while 34.37% took a 'wait and see' approach. Just 12.5% thought the measures were the right thing to do.

The Government's 'one in, one out' policy for dealing with business red tape was met with general scepticism, although more than half (56.25%) admitted they did not know enough about the scheme to make an assessment, while 25% did not think it would work in practice. Only 15.62% thought the policy would make doing business easier, while 3.12% thought it would only lead to more red tape.

There was reluctant support for the VAT hike introduced at the beginning of the year, with 46.9% conceding that while it would increase the burden on business, the new 20% rate was necessary to reduce the deficit. Just 12.5% couldn't see any problem with the increase, 18.75% thought it was completely unnecessary and should be reduced again as soon as possible and 21.9% felt it was still too early to form an opinion either way.

When asked about the Government's plans to spend £150 million helping businesses access loans and capital financing over the next four years, almost 50% were in favour, even if it wouldn't affect their business, while 25% thought the money would be better spent elsewhere. The same number again were unsure of the benefits at this stage.

More than half (53.12%) did not foresee their business being affected by reductions in business support and grants as a result of Government departmental cuts, although 12.5% said they relied on such support and 12.5% feared they would struggle to secure funding in the future as a result. Around 22% were unsure about how it would affect them.

Harvey Owen, managing partner at Nicklins, said: "After the difficulties experienced by many businesses during the recession, it is perhaps understandable that so many of the firms who took part in our survey remain sceptical about the Government's plans to help them access finance or reduce red tape.  

"However, it is heartening to see that many companies not only saw an improvement in business last year, but foresee an even better one for 2011-12. At Nicklins, we are starting to see a lot more optimism among many businesses but, of course, we are not out of the water yet as far as the economy is concerned so many are also remaining cautious.

"It will be interesting to see what the picture is like in a year's time, but I hope we will see even more smaller firms looking forward to a brighter future."