UK ministers unveil aid package to salvage rural economy

4.00 pm - By NIGEL MORRIS, BEN RUSSELL and IAN HERBERT

LONDON - Ministers in the UK are finalising a rescue package for the rural economy designed to save thousands of businesses ravaged by the foot-and-mouth crisis.

Business rates for village shops, post offices, pubs and petrol stations will be halved, while country-based firms may see VAT payments deferred during the outbreak. New non-agricultural businesses based on farms will get a 50 per cent rate relief for five years to encourage diversification.

The first measures in the wide-ranging series of initiatives were announced in the House of Lords early today (NZT) and more will be outlined later today by the Environment minister Michael Meacher. They represent the first practical acknowledgement by the Government that the harm being caused by the continuing crisis has the potential to destroy rural industries other than farming.

The Government last night bowed to pressure to call in the Army to help with the disposal of culled animals. About 100 troops will assist local contractors in Devon from daybreak today and soldiers are also on standby to help clear the backlog of dead animals in Cumbria.

The moves come amid warnings that foot-and-mouth disease could cost the countryside as much as $15bn in lost trade.

Ministers held talks with high street banks yesterday in an attempt to persuade them to extend overdraft facilities to businesses hit by the slump in rural tourism. They promised to take a more sympathetic view of customers whose livelihoods were threatened. Further aid for struggling farming areas will be announced today after a meeting of the emergency task force chaired by Mr Meacher.

Tony Blair has authorised a multi-million pound advertising drive at home and abroad to promote the message that nearly all of Britain's countryside is open to visitors. The Tourism minister, Janet Anderson, flies to the United States today to launch a publicity campaign to reassure Americans that the UK is a safe holiday destination. Plans to relax some of the restrictions on visitor attractions – such as historic houses – in areas unaffected by the disease will be unveiled shortly.

The moves were revealed as 23 more cases of foot-and-mouth disease were confirmed, taking the total to 348.

- INDEPENDENT

Herald Online feature: Foot-and-mouth disaster

UK outbreak map

World organisation for animal health

UK Ministry of Agriculture, Fisheries and Food

The European Commission for the Control of Foot-and-Mouth Disease

Pig Health/Foot and Mouth feature

Virus databases online