Swine flu 'will cost UK £50bn'

A SWINE flu epidemic would set the UK back £50 billion, one of the nation's most respected economic forecasters has predicted.

Ernst and Young's ITEM Club, which uses the Treasury's economic model to make its predictions, said the H1N1 virus would affect the recovery of all major economies.

The organisation estimated that the UK GDP will fall by 3 per cent in 2009 and another 1.7 per cent in 2010.

A spokesman said: "Assuming the death rate remains low, the main effect will be that sick employees cannot go to work."