A report handed to the government has claimed that the foot and mouth outbreak will cost the UK tourist industry £5 billion by September with an 80 per cent drop in revenue in some parts of the country.

The prime minister will today redouble government efforts to boost tourism by telling the world that "Britain is open for business" on a visit to Yorkshire. Tony Blair will announce £120 million in guaranteed loans for the beleaguered industry.

The British Tourist Authority held an emergency meeting on Thursday night and executives were told that the government's decision to delay elections until June could prove to have a "catastrophic" effect on the industry.

The possible impact of foot and mouth on the economy also influenced yesterday's decision by the Bank of England's monetary policy committee to cut interest rates.

The number of cases yesterday rose by 33 to 1,058.

The Telegraph publishes an investigation into a "defeatist attitude" within MAFF which caused the government to ignore scientists and led to a doubling of the epidemic.