Rising food and fuel prices will provide continuing challenges to the Government which will need to ensure more is done to support rural communities just as much as urban ones, an expert warned today.

Dr Stuart Burgess, the chairman for the Commission for Rural Communities, made the comments as the organisation’s State of the Countryside report was published. The report said Shropshire would face a number of important challenges.

It highlighted rising house prices, a lack of access to essential services and a three per cent rise nationally in the number of people living below the poverty line in rural areas.

It says the Government will need to address these in an effort to do more to resolve inequalities.

New figures from estate agents Knight Frank today also revealed that the price of country homes fell by nearly four per cent during the second quarter of the year as the problems caused by the credit crunch spread to the prime property sector.

Dr Burgess said: “The Government has introduced a lot of excellent initiatives to help support rural areas, but there is an urgent need for more to be done to resolve inequalities that are stifling potential and limiting access to essential services.

“Rising food and fuel prices will challenge policy makers to make sure that the changes that will be needed provide benefits to all communities, including those in rural areas.”

The report said one of the most striking findings involved the rise in the number of people living in poverty in the county.

But Dr Burgess added: “It’s not all doom and gloom. Rural areas generally enjoy healthier lifestyles and a better quality of life, not to mention lower incidences of crime.

“Other inherent strengths include a higher rate of business start-ups and an overall growth in the number of businesses compared to a net decline in the urban business base. Between 1998 and 2007, Shropshire has seen an increase of 4,770 people working in knowledge-based industries.

Knight Franks’ figures about the cost of prime country property showed three consecutive quarters of sliding prices which meant that annual house price growth in the sector had now turned negative, with the properties losing 2.8 per cent of their value during the past year.

What the report included:

• A three per cent rise in the number of people living below the poverty line in rural areas.
• Twenty four per cent of people in Shropshire have to travel more than 1.2 miles to get to their nearest post office.
• Nearly 50 per cent of people in Shropshire have to travel more than 2.4 miles to get to a bank or building society.
• Average weekly wages in south Shropshire are £251.20, while in north Shropshire they are £376.40. In Shrewsbury and Atcham they are £386.90.
• Average house prices in rural areas in Shropshire are £234,692 while in built-up areas they are currently at £212,823.
• Fifty per cent of weekly income in sparsely populated communities goes on essentials such as food, housing costs, energy and transport. It was found that this compared with 39 per cent in the highest income rural households and 47 per cent in urban counterparts.
• Between 1998 and 2007 there has been an increase of 4,770 people working in knowledge-based industries.

By John Kirk