Foot-and-mouth disruption 'will cost UK £9bn'

Disruption caused by the foot-and-mouth outbreak will cost the UK economy an estimated £9bn this year, it was been claimed.

The figure, which equates to 1.1% of gross domestic product (GDP), covers the loss of earnings for farmers and suppliers, higher food prices and the impact on tourism.

The Centre for Economics and Business Research says its estimates had spiralled more than threefold since the start of the month.

It also warned that the effect from the crisis would continue into next year, knocking another £2.1bn from the GDP.

Assuming the rate of infection starts to diminish by the end of this month, the lost output for farmers and suppliers is thought to be £3.6bn.

Domestic tourism will lose £2.7bn, with the dent to income from fewer foreign visitors set to be around £5.2bn.

The figures are offset by income from more people buying foreign holidays and higher levels of spending on items other than tourism, such as DIY.

Paul Crawford, CEBR senior economist, believed one of the most startling findings was the lower income from fewer foreign visitors.

He said: "While a lot of domestic tourism expenditure will be reallocated into other activities, the potential loss from foreign tourism is massive."