BUSINESSES in the North are facing crippling losses as the foot-and-mouth outbreak escalates.

The farming and food industry alone will lose an estimated three quarters of a billion pounds if the disease is not brought under control in the next three months, according to the National Farmers Union.

And a report by experts at the Centre for Economics and Business Research has put the long-term cost to farmers at up to £2.6bn, once the impact on export markets is taken into account.

As businesses warned they could not survive for long, a sixth outbreak was confirmed in the North-East - at Whalton, north of Ponteland.

Five other new cases were confirmed across the UK yesterday - including two in Scotland and one in Northern Ireland - taking the national total to 32.

The effects of the epidemic are being felt among companies supplying equipment for countryside pursuits, including walking, climbing, mountain biking - even caravanning.

Phil Sharratt, who owns Coast and Country in Saltburn, said: "If people are being told to stay away from the countryside, then our customers will also be staying away."

His shop normally took about £2,000-£3,000 a week at this time of year, but this week had taken only £100.

Mr Sharratt said: "Walking is the most popular sport in the UK and if people can't go walking that is going to have a massive effect on the industry."

David Brown, at Guisborough Cycle Centre, said if the restrictions on going into the countryside extended into the summer it could have a serious effect on business.

Next week's Crufts dog show, due to be held at the National Exhibition Centre in Birmingham, was cancelled yesterday in a bid to contain the disease.

The Forestry Commission also sealed off land to the public and the National Trust closed nearly all of its sites, including countryside, houses, gardens and parks, until further notice.

Officials were also considering whether to delay more fixtures in rugby union's Six Nations Championship.

Tomorrow's match between Wales and Ireland in Cardiff has already been postponed, while horse racing has been suspended in Britain until March 7 and the prestigious Cheltenham Festival, due to be held in two weeks, is under threat.

The Irish Racehorse Trainers Association said there would be no Irish runners at this year's festival, whether it goes ahead on schedule or not.

Meanwhile, Asda said one of its largest northern stores - in Wakefield - had run out of pork and lamb, but other supermarket chains reported no serious problems.

Economic disaster feared - Page