Rural areas such as Shropshire and Mid Wales should have a lower level of fuel tax, according to Montgomeryshire MP Glyn Davies.

Mr Davies called for tax concessions in next month’s budget in a speech he made in the House of Commons and he asked the chancellor to consider introducing a “fair fuel stabiliser” or introduce a lower level of fuel tax to help residents living in the most rural areas of Britain

It comes after officials at the Country Land and Business Association in the West Midlands claimed soaring fuel prices and poor public transport links will force the recovery of rural economies to a grinding halt.

They have claimed the threat of reduced bus services, a poor and expensive rail network and lack of access to fast broadband could see places like Shropshire left behind as urban areas begin to emerge from the economic downturn first.

Mr Davies said: “There can be no doubt that current high fuel prices are hitting rural areas of the UK very hard indeed — acting as a reverse regional policy.

“I want the chancellor to recognise this, and make some tax allowance in his budget in March. I believe he should do something to help rural areas which are being so badly hit at present.”

“There are three options the chancellor could take. He could introduce a ‘fair fuel stabiliser’, he could introduce a remote areas discount, or he could defer a tax increase across the board.”

Caroline Bedell, CLA West Midlands director, said: “The current spate of fuel thefts in rural areas is simply one visible symptom of many more and deeper problems.

“Rural business provides the region with much more than quality food and attractive views.

“It is a hotbed of entrepreneurialism that, in terms of economic output, punches above its weight, yet is under threat of being stifled because it simply cannot afford to compete, continue or contribute.

“Where buses and trains do exist, they are infrequent, expensive and do not offer a real alternative.”