THE cost of East Lancashire's foot and mouth outbreak is continuing to rise and church leaders have called for cash grants for farmers.

The owner of Slinger's abattoir denied accusations that he has laid off all his staff but admitted there was no way of knowing what may happen if the crisis continues.

John Slinger said he was still paying 250 staff as usual, despite reports by the GMB union that 300 had been laid off indefinitely.

He said: "Only the abattoir is shut, and the workers are still coming in for cleaning and maintenance, and to work in packing and the rest of the plant."

Mr Slinger said they expected the abattoir to be shut for another two weeks, but said he didn't know what would happen if another case was discovered within the three kilometre exclusion zone around his plant.

Another case was confirmed in Carnforth, Lancashire, yesterday, along with eight other cases throughout Britain.

A Ministry of Agriculture spokesman today said they had already paid out £6,041,000 compensation to farmers whose animals had been destroyed, but other farmers and businesses affected by the disease have not been compensated.

Lancashire churches have now launched a new appeal for funds to aid farmers who cannot sell animals due to restrictions on movement of stock to market.

The Rev Gill Henwood, Lancashire's Church of England rural chaplain, said cash grants were needed to tide over farmers who still had to care for animals while their income was stopped.

She said: "Hundreds of animals ready to be sold cannot be moved.

"Farmers need cash now to buy animal food.

"It is vital for the welfare of our farm animals and our farmers that donations come in at this time."

The owner of Lord's House farm, Mary Walker, said their income was badly affected despite the Great Harwood business being given the all clear after being tested for foot and mouth.

The farm is a special needs centre which uses animals as therapy for people with learning difficulties, and teaches animal management.

They are now having to refuse students entry to prevent them bringing the disease on to the farm, although five of the 14 staff who were laid off have now returned to help look after the animals.

Two more suspected cases of foot and mouth in the Withnell area are now under investigation.