Britain's smaller businesses are not waiting for Brexit to make investment decisions, the chief executive of Metro Bank has claimed.

Profits at the high street challenger surged 135pc in the three months to September after opening its 50th branch and reporting a "particularly strong quarter" for attracting business customers.

Craig Donaldson, chief executive of Metro Bank, told the Telegraph: "Customers tell me when I go out to see them that their businesses are growing.

"I don't see people on the high street waiting for Brexit, I see people getting on with it."

Business customers account for more than half Metro Bank's deposits, which grew 10pc overall to £10.8bn.

Lending rose 11pc to £8.6bn and the bank said it was on track to meet its target of lending £1bn to businesses this year.

Mr Donaldson confirmed Metro Bank would bid for a portion of the £833m fund the Government is carving out of RBS to boost its challenger rivals in return for letting it keep subsidiary Williams & Glyn.

But he added to growing criticism of the process, with the financial threshold for bidders set high enough to allow Spanish giant Santander to join the contest.

He said: "We have to make sure what we get out of Williams & Glyn will go into creating real competition on the high street and jobs.