Ms Beckett says the new proposals will "streamline" rural bureaucracy.

Under the Rural Strategy, decision making and funding will be devolved to regional development agencies.

She said the changes would ensure decisions would "better reflect the needs" of each region.

The plans follow Lord Haskins' report last year which recommended fewer agencies be used in providing grants.

Ms Beckett told MPs funding to regional development agencies would be increased from �45 million to �72 million next year.

A new Countryside Agency will be created to act as "expert, watchdog and advocate" to monitor the way in which funds are handled regionally.

'Economic prosperity'

The agency, which will be small, will focus on rural disadvantage and will be established by April 2005.

And MPs were told that an Integrated Agency will also be established to ensure a healthy countryside

Ms Beckett said the aim of the strategy was to "tackle rural social exclusion wherever it occurs and achieve fair access to services".

She added: "Access to transport, affordable housing and broadband help to underpin both economic prosperity and social justice for rural dwellers".

A healthy and effective countryside brings social benefits, such as tranquillity, but also economic benefits Margaret Beckett, Environment Secretary

Last week the government announced that more money will be provided for sustainable housing across the UK.

Ms Beckett said her department would act as "guardians" to ensure that funds are allocated fairly in rural areas.

The government hopes that the "streamlining" of the various agencies involved in rural affairs will mean that matters in the countryside are dealt with more effectively.

"A healthy and effective countryside brings social benefits, such as tranquillity, but also economic benefits," said the Environment Secretary.