Foot-and-mouth impact "small" says TUC

The overall economic impact of foot-and-mouth is likely to be minor and temporary, but small businesses in rural areas will suffer most, according to a new report published today by the TUC.

Even without the epidemic, it claims tourist businesses would have lost money because of bad weather, rail chaos, the strong pound and the weak US economy.

The report suggests that the outbreak could reduce the UK's growth rate by over 0.2%, largely through the expected fall in foreign tourism.

The south west, which is most dependent on tourism and agriculture, was seen as the most vulnerable region while northern England, excepting local parts of Cumbria, was seen as less at risk. Wales, Scotland and Northern Ireland also have high concentrations of jobs in these two sectors.

But the report claimes that 40% of all tourism-related jobs were in big conurbations, with many others in cities, and seaside resorts. While these areas could suffer from a drop in foreign visitors, they could also pick up extra business at the expense of countryside locations.

The epidemic could speed up the shift towards bigger businesses, the report concludes.