ONE in 10 small and medium businesses are considering quitting Weymouth and Portland, according to a new survey.

The traders signalled their concerns in a new business confidence survey conducted by South Dorset Conservative Parliamentary spokesman Ed Matts on behalf of the borough's chamber of commerce.

Just over half of bosses questioned reported little change in their own business situation but 22 per cent experienced a decline in trade.

The survey showed a mixed outlook overall and just under 10 per cent were considering withdrawing from the area.

Mr Matts revealed the findings at the annual meeting of the Weymouth and Portland branch of the Federation of Small Businesses (FSB) held at the Hotel Rembrandt.

Now he has called for bold new steps and a positive vision of the borough to overcome barriers confronting businesses and make the most of such opportunities as world heritage status, the sailing academy and the Olympics bid.

Mr Matts said: "What I am particularly concerned about is that a number of small to medium-sized businesses have suffered badly to the extent a few are considering giving up in Weymouth and Portland.

"Clearly, New Look's decision to relocate its distribution network to the Midlands will not help employment or business confidence. The impact of an 80 per cent rise in business rates will also hit smaller businesses hard."

He added: "But on the other hand there are a number of start-up or young businesses who are right to be very excited about their future.

"We have a lot to offer in this borough to businesses and to employees, to residents and visitors.

"With the local economy still fragile in this way, every effort must be made to promote the borough by singing its praises loudly and by making it easier for people and businesses to get here."

Responses from the 53 businesses that replied to questionnaires showed that almost all businesses believed that a significant increase in Government spending on roads would greatly help.

Valerie Stevens, chairman of the FSB steering group said "There are so many key issues that need to be addressed if we are to make a difference within the small business sector.

"We need people with vision."

Nigel Reed, president of the Weymouth and Portland Chamber of Commerce and Industry, said the survey could help remove uncertainty that would discourage investment.