Warning: Dr Cable

The Liberal Democrats have demanded more action from the government to help businesses affected by the foot and mouth outbreak.

The party claimed on Tuesday that trade and industry secretary Patricia Hewitt was failing to do more to ease hardship for small firms hit by the outbreak.

The Lib Dem's trade spokesman Dr Vincent Cable called for an increase in financial support to regional development agencies above the £50 million that they have so far received. He also said the government should extend hardship rate relief to businesses in foot and mouth areas and the availability of interest free loans.

"The much bigger tourism and small business industry in rural areas has been neglected. There is growing frustration, particularly in the tourist industry, and a fear that permanent damage has been done. The government has not reacted quickly or comprehensively to this foot and mouth crisis," Dr Cable said.

The Forum for Private Business, which is joining the Lib Dems in presenting the list of demands to Hewitt, said the government had shown a "serious lack of understanding" of the impact of foot and mouth non-farming rural businesses.

"The tourism industry is much bigger than the farming industry, but was left to sink or swim along with other non-agricultural victims of foot and mouth," said the FPB's Nick Goulding.

The British Chamber of Commerce welcomed the suggestions, but wanted to see more done to raise awareness of the available funding.

A BCC spokesman agreed backed the extension of the hardship relief rate and the implementation of interest free loans, but expressed concern that money was not reaching the businesses that need it. "It is not just a question of throwing money at it, but of how it is spent," he said.

The BCC said it was also looking to banks "for their understanding and support during what are still difficult times".

In response to the Liberal Democrat proposals, a spokesperson from the British Trade Authority said: "While the BTA are grateful for the support given to date to help boast marketing efforts overseas, we recognise there is still a long way to go before full recovery from the foot and mouth outbreak."