LAST year’s foot and mouth outbreak in Surrey, which led to the closing down of Northern livestock marts at a crucial time of the year, was largely caused by “muddle” and inter-departmental “in-fighting” says a devastating report issued yesterday.

Although the outbreak occurred on a Government laboratory in Surrey affecting eight local farms, autumn sheep sales were closed throughout the country – and this caused a severe knock-on effect to hill farmers in the Yorkshire Dales and Lake District.

Farmers had to hold back the sale of sheep and cattle, incurring high feed costs, and when restrictions were eventually lifted there was a glut which sent prices tumbling. One mart alone, at Hawes, is said to have lost £2 million over one two-day sale.

The Government ordered an investigation and its findings, published yesterday, blamed broken pipes at the “shoddy” research station, which could have been repaired for £50,000.

But the centre’s budget had been slashed by Gordon Brown in one of his last acts as Chancellor of the Exchequer.