UK businesses are divided on whether or not they agree with the Chancellor's statement that the economy has moved 'from rescue to recovery', with SMEs more uncertain than larger companies, according to research by the insolvency trade body R3.

R3's latest Business Distress Index shows that 49% of businesses overall and 51% of SMEs disagree with the Chancellor that the recession is at end, but only 35% of large businesses feel the economy was still in trouble.

R3 president Liz Bingham said: 'Larger businesses may well be confident that they can ride out any remaining bumps on the road to recovery, but small businesses still face significant pressures, whether it's access to finance or simply the pressures of growing demand.'

There is a similar split in views about options for growth going forward. While 70% of large businesses reported at least one sign of growth, only 51% of small businesses were in the same position.

However, R3's research does suggest confidence about future prospects is growing overall. Over half (53%) of businesses reporting being more optimistic about the economy, compared to 39% the previous quarter, which is the highest level since this was first measured in 2011. Despite this, when it comes to their own levels of business activity, 50% expect this to remain the same.

Bingham said: 'There have been false-starts and phantom green shoots before, so it is not surprising that while businesses' general outlooks are positive, they're still cautious about translating this optimism to their own prospects.'