The impact of public sector cuts has caused small business owners to be more pessimistic about the future ahead of today’s Comprehensive Spending Review, according to new research from the Forum of Private Business.

The research shows 17% of businesses were ‘pessimistic’ or ‘very pessimistic’, up from 10% in July. However, the number reporting they are ‘confident’ or ‘very confident’ has also risen to from 35% to 40% in the same period.

The Forum’s chief executive Phil Orford says: “There will be pain as a result of the pending cuts – including for small businesses working in the public sector – but sometimes it’s true that the only thing to fear is fear itself.

“It is important to be positive and not just stoke the fires of pessimism. As some of our members are clearly aware, there will also be opportunities for private enterprise to step in to deliver excellent, efficient services and provide real value.”