The number of small firms in Yorkshire planning to hold staff Christmas parties this year has risen significantly in comparison to 2012, according to a survey.

The latest quarterly Close Brothers Business Barometer revealed that more than 69% of small and medium-sized enterprises in the region will host a festive party for staff this year, an increase of 31% on this time last year.

The survey of SME owners across the UK also showed that 31% of firms in the region are benefiting from current trading conditions, a rise of 17% on the previous quarter, suggesting that business confidence is improving.

Lee Hayes, regional sales director for Close Brothers Invoice Finance in Yorkshire, said: “Christmas parties have fallen victim to the recession over the last few years and this noticeable increase is a positive sign that business confidence is picking up.

“For many bosses, the annual Christmas party is significant as it is a chance to build relationships with staff and reward them for their hard work and loyalty throughout the year.

“However, over the last number of years, many employers have been forced to cut back on any unnecessary expenditure and understandably staff entertainment is often first on the list. Staff morale can make a real difference to a company’s bottom line, so it’s great to see so many employers recognising this and treating their staff with festive celebrations this year.”

Mr Hayes said: “It appears that the tide could be starting to turn for SMEs in Yorkshire and Humberside. Our research suggests that many firms are making the most of the current economic climate with increasing numbers reporting an improvement in their trading conditions.

“With a potential upswing in our sights, we believe it’s important that employers take this opportunity to wind down with their staff in advance of what is shaping up to become a very productive 2014.”