THE development of a first-class transport system across the UK is vital to the region's economy, the Federation of Small Businesses in the North-west says

A new report shows that transport continues to be a major issue with many of the organisation's 17,000 small business members in Manchester, Cheshire, Merseyside, Lancashire and Cumbria.

Mike Pearson, the North-west policy chairman, said the cost of fuel and road tax as well as problems with road networks were a major concern for small businesses.

But public transport was also an issue following the collapse of Railtrack plc.

Mr Pearson said: "Though the majority of small businesses carry out much of their trade within a 50-mile radius of their base, a good quality transport infrastructure is crucial to success.

"The regional economy will only prosper if it is served by an effective integrated system."

Members want the Government to review fuel prices, ring fence transport taxes to improve public transport systems and outlaw road tolls to encourage regions to trade throughout the UK. Transport is one of the issues featured in a new document, Small Business -- Big Part of the North-west.