The Federation of Small Businesses (FSB) has warned that the review on local government reform must consider the needs of Britain's business community.

Although the findings of the Lyons Report on local government reform are not due until later in the year, the inquiry has been awarded additional scope to consider transport, skills and planning and their impact upon local authorities.

Among the FSBs concerns include the potential damage to the business community from any return to allowing local authorities to set business rates.

The FSB is also against any introduction of a road pricing scheme without first creating a "robust transport system" and that the provision of skills should consider, primarily, the needs of Britain's business community.

"It is vital that all levels of government put economic growth first," said Roger Culcheth, local government spokesman for the FSB.

"The wealth that businesses create can contribute to solutions to our problems via private sector innovation and public sector tax collection," he added.

The FSB is an organisation, representing its members from the UK's small business community.