New Government rules giving rate relief to more village shops will not do much good in Oxfordshire, it is claimed.

In addition, regulations to help farmers diversify after the BSE and foot and mouth crises may also not be good enough, according to Oxfordshire Rural Community Council and the National Farmers' Union. At the moment, 50 per cent rate relief is given to shops when they are the only ones in villages of under 3,000 population and below £6,000 rateable value.

The new legislation says the relief can go to other shops in the villages, provided they are mainly food shops.

Helen Datson, field worker for village shops for the rural community council, said there would be little benefit.

She said: "Oxfordshire is lucky because all its district councils give the mandatory rate relief of 50 per cent, and dip into their own coffers for the other 50 per cent.

"But most villages have only one shop, especially food shops to which the regulations apply. Its effect here will be minimal."

Andrew Opie, head of the technical department at the NFU agreed, and said the five-year period of rate relief, due to come into effect on August 1, was not long enough.

"If they set to work immediately, it will be around two years before they can get planning permission and have conversions done. That will mean only three years' relief.

"We are still talking to the Government but at the moment the new rules do not look as though they will do a great deal of good."