Britain's businesses are prospering despite fears over the state of the economy, with profits rising and investment spending back on the agenda.

Although companies remain cautious because of political uncertainty, their finances are in increasingly good shape, according to a survey from the Institute of Chartered Accountants in England and Wales (ICAEW).

Profits and exports are both growing at the fastest pace since 2015 – well before the Brexit vote – and capital investment spending is also at a two-year high. Employment intentions are robust and research and development spending is also on the up.

Michael Izza, chief executive of ICAEW, said: "While businesses are struggling to be confident in the current environment, there are reasons to be more optimistic.

"Businesses are controlling costs and there is finally some improvement, though small, in export sales growth. IT, construction and business services are all modestly positive. Even retail has seen an improvement in confidence – albeit still in negative territory.”