SMALL and micro businesses across Britain expect to create 1.9 million new jobs this year potentially adding £27 billion to the British economy in new small business wages, according to a survey.

Direct Line says 400,000 home-based businesses are also looking to take on an employee for the very first time.

Small and micro businesses are planning to pay new staff on average £14,405 a year and currently self-employed businesses will start new staff on £10,795, said the company's survey.