Concerns over doing business in London is the topic of the year's first confidence report.

The FSB London Small Business Index's first report for 2018 shows while confidence in doing business in the capital is higher than the UK average and has risen in since the penultimate quarter of 2017, there is a significant concern about the high costs of doing business in London.

According to the analysis, which covers the last three months of 2017, 15 per cent of business say they intent to downsize, sell or close their business in the next 12 months due to the costs of operating in London stifling their ambitions.

The FSB have called for the government to implement an increased inner and outer London small business rate relief threshold, which they believe reflects the specific issues small business in London face.

Sue Terpilowski, London policy chairman for the Federation of Small Businesses, said: "This fresh data for 2018 shows how resilient and optimistic small business owners in London continue to be – that goes with the territory of starting and running a business.

"However, we must recognise that for many small businesses the cost of doing business is weighing them down. These businesses are beginning to feel like boxers taking jab after jab whilst on the ropes.

"With the business rates revaluation from last April impinging on the bottom line, national and local government, along with the Mayor, must be on their side in 2018 to take businesses off the ropes and back fighting in the centre of the ring."

The report showed that 76 per cent of businesses have seen an increase in the cost of running their operations, but 37 per cent of businesses said their gross profits have also increased.

As well as this, 12 per cent of FSB members decreased their staff, while 9 per cent made employment increases.