THE Government's response to the foot-and-mouth crisis has been more economically damaging than the disease itself, says a damning report.

The Council for the Protection of Rural England (CPRE) said in a study of the key lessons to be learned from the outbreak that the Government's efforts to control the epidemic demonstrated "a failure to understand the modern economy of the countryside."

The study concluded that:

l The countryside and the economy of rural areas can no longer be isolated from the wider economy;

l the beauty and diversity of the countryside is a major economic asset and should be better protected and restored;

l the current focus on agricultural production and its contribution to the economy of the countryside needs to be broadened to address the role of farming in producing "diverse and accessible rural areas."

CPRE head of rural policy Gregor Hutcheon said: "The initial response to 'close the countryside' was based on the misnomer of a separate rural economy, isolated from the rest of the economy. Rural policy needs to recognise that the countryside is about much more than farming, and farming is about much more than producing food and fibre."

l The British Incoming Tour Operators Association said there would be a 20 per cent drop in visitors to Britain following the US terrorist attacks.

l One case of foot-and-mouth was reported on Saturday, near Kirkby Stephen in Cumbria. This brings the total number of cases to 2,026.