ALMOST half of small businesses in the South East rely on temporary workers to manage their workloads, according to research released by the Barclays financial services group last month.

Forty-five per cent of companies surveyed said they use temporary staff and 13 per cent of these rely on them at least once a month.

A substantial 21 per cent of the small business owners surveyed also estimate that employing temporary workers instead of permanent staff enables them to cut a week's worth of red tape each year.

Maria Allen, small business marketing director for Barclays, said: "Small businesses in the South East are clearly on the ball when it comes to cutting red tape.

"By using temporary staff, they're saving themselves time - one of the few things money can't buy more of.

"Given that small business owners tend to work 60 hours a week already, it's a significant contribution to the business."

Across the UK, many small business owners are reliant on temporary staff, with almost 30 per cent who use temporary workers stating that their business success depends on them.

Nearly one in 10 businesses use temporary staff on a weekly basis and just over a quarter use them occasionally.

The research revealed that sectors most likely to use short-term staff are agriculture, hotels and catering (58 per cent each), construction (50 per cent) and business services (45 per cent).

The main reasons businesses employ short-term staff were revealed as fulfilling a short-term need (55 per cent) and easing demand and supply fluctuations (31 per cent).

In construction and catering, 18 per cent use temporary workers to draft in expertise.

The research also shows that seasonal fluctuations (70 per cent) and holiday cover (49 per cent) are key times when they would use temporary staff, with one in five saying they would employ potential employees on a contract basis as a test to their suitability for a permanent position.