England failure 'may hit economy'

Sports businesses are warning that England's failure to qualify for the Euro 2008 football tournament will hurt their profits next year.

England's kit manufacturer Umbro, and the retailer Sports Direct both issued statements warning of the impact of the team's loss to Croatia on Wednesday.

The defeat may also have a wider impact on the economy, with pubs, travel firms and bookmakers all set to be hit.

One estimate puts the cost to the economy as high as £2bn.