HAMPSHIRE'S economy could be dealt a major blow by the outbreak of foot and mouth disease.

The crisis could accelerate the decline that has taken place in the county's agricultural industry, which has already seen a 49 per cent drop in income since 1995.

The national ban on all animal movements is expected to hit a wide variety of agricultural outlets in the county, including cattle breeding centres.

Householders could also be hit in the pocket.

The previous foot and mouth outbreak in 2001 is said to have cost taxpayers £3 billion, resulting in a £126 bill for every household across the country - including Hampshire.

Experts say the cost of the latest crisis all depends on what happens where and how long the emergency lasts.

Alarm bells will start ringing in the tourist industry if the disease spreads beyond the special protection zone set up around the two Surrey farms where the virus has been found.

The 2001 outbreak resulted in large parts of the countryside being closed to the public, including most of the Crown lands of the New Forest.

Any move to impose similar restrictions in the next few weeks would have a devastating impact on the Forest's £100m-a-year tourist industry.

Southampton and Fareham Chamber of Commerce, the largest organisation of its type in the county, said the Government was battling to prevent a repeat of the scenes witnessed six years ago.

A spokesman said: "Ministers are fighting very hard not to close the countryside to tourists and holidaymakers in August.

"Their main objective is not to let things get that far and the chamber fully supports that move."

About 90 per cent of Hampshire is rural and agriculture plays an important part in the county's economy, employing more than 9,000 people.

However, any outbreak of foot and mouth disease in the county could hasten the decline that has taken place in the industry in the past 12 years.

This year's Hampshire Farming Conference was told that total income from farming had fallen by almost 50 per cent since 1995.

More than 70 per cent of the agricultural workforce was employed full-time in 1995 but the figure had fallen to 38 per cent by 2006.

Malcolm Crabtree, of the Hampshire Economic Partnership, was unavailable for comment on the potential impact of foot and mouth.