A NORTH West small business organisation has urged banks and Government agencies to go easy with repayment demands due to the foot and mouth outbreak.

The Federation of Small Businesses in the region has asked for more tolerance as the cattle virus escalates.

FSB has written to all major banks, the British Bankers Association and the Inland Revenue, Customs and Excise and the Local Government Association.

The business group has requested they show restraint in demand for repayments of loans and overdrafts, tax, national insurance and business rates in the wake of the outbreak of the disease.

The FSB stresses it is not just farmers who are experiencing cash flow difficulties because of the crisis.

Businesses in the transport, retail, leisure, tourism and service sectors in particular are now facing problems due to foot and mouth.

Paul Henly, FSB regional policy development officer, said: "In many cases, business is in a critical condition. Owners of small firms are working very hard to keep their business a viable concern.

"They are paying staff and suppliers and trying to make ends meet in these difficult circumstances.

"The spread of foot and mouth is serious but temporary. We are urging tolerance and understanding to allow businesses breathing space to recover from this crisis."

The FSB has already set up a fund of £500,000 to provide interest free loans to members affected by the crisis who do not qualify for Government help.