ALTHOUGH the exclusion zone around the nearest confirmed foot-and-mouth case is across the county boundary, Test Valley traders have known for weeks that the district was under siege.

Many have reported a drop in business of more than a third on last year as tourists stay away in their droves.

Firms badly needed a shot in the arm after the past 12 months which has delivered a poor summer, a fuel crisis and floods.

But with countryside rights of way closed across Hampshire, the money-spinning walkers who normally flock to the area have been stopped in their tracks.

Stockbridge's bustling high street - where shoppers and tourists normally battle for car parks - was described by one publican as "a morgue".

Shirley Logan, who works at Folklore selling bric-a-brac, said: "It's definitely down, there's just less people around.

"I think it has also affected local trade because they're all a bit depressed and they don't come out as much."

People understand that paths need to be closed to contain the spread of foot-and-mouth but there is still a feeling of too little, too late.

Graham Atkins, owner of the John O' Gaunt Inn at Kings Somborne, said: "The feeling is that everything should have been stopped, even places like this, just to stop it."

Farmers and rural businesses that have been hit hard by the foot-and-mouth crisis are to be given special concessions.

Test Valley District Council will reduce or waive business rates on the grounds of hardship where businesses were of benefit to the community.

Councillor Norman Arnell said: "The council recognises the importance of the borough's rural economy and the concerns of many local people in the current situation.

"Our powers to directly assist businesses are restricted, but we can help by ensuring that rate relief is made available to those businesses hardest hit by the present restrictions.

"We would encourage anyone who is suffering hardship to contact us as soon as possible to discuss what assistance can be made available to them."

People should ring the Romsey office on 01794 527700 or the Andover office on 01264 364144 for details.

While tourist attractions such as Ampfield's Sir Harold Hillier Gardens and Arboretum and Mottisfont Abbey begin to open again, the county council said speculation that walking paths would re-open was unfounded.

A spokeswoman said: "There is a lot of misinformation. Urban routes in and around towns are open and always have been but the countryside rights of way are closed and always have been.

"But we are taking government advice, particularly from the Rural Taskforce, and we are monitoring the situation."