BUSINESS leaders are calling for a suspension of bankruptcy laws to help North-East firms struggling against the foot-and-mouth epidemic.

The Federation of Small Businesses (FSB) is calling on the Government to help firms facing closure.

The federation has just published the results of a survey of companies in the region, which reveals that five per cent expected their business to fold because of the epidemic, nine per cent expect to voluntarily close, and a further 23 per cent said they expected to have to make severe cuts in their living standards as a result of the lack of trade.

Just over 60 per cent of the 345 businesses surveyed said they had been adversely affected by the outbreak.

The survey was carried out by the Darlington branch of the FSB, and chairman Peter Troy said: "Rural businesses that are dependent on people going to rural locations, such as guest houses and shops, are suffering very seriously.

"We are also asking for the suspension of bankruptcy and insolvency laws with respect to businesses which have been adversely affected by the epidemic.

"There is a lot of stigma attached to bankruptcy and we feel businesses should be allowed to neatly close."

It is also anticipated foot-and-mouth disease will have a devastating impact on the North-East landscape in the long-term.

Philip Lyth, senior conservation officer with the Farming and Wildlife Advisory Group, in North Yorkshire, said farms are likely to increase in size to make them more viable, leaving farmers less time to look after wildlife habitats, drystone walls, woodlands and hedges.

The disappearance of hill sheep flocks, which graze the hills and moors, will also have a devastating effect and the landscape could revert to scrub-ridden woodland.

Mr Lyth said: "The diverse cultural landscape which attracts tourists would be gradually replaced by a wilder, uncared-for countryside.

"But one of the most serious changes would be the loss of the farmers who have built up a knowledge and understanding of their land and the management practices needed to maintain it over generations, and that cannot be replaced."

Read more about foot-and-mouth here.