RURAL transport is improving but village post offices continue to decline, a national survey has concluded.

The Countryside Agency's Rural Services in 2000 report, launched on Tuesday, showed 67pc of parishes had a bus service six or seven days a week - an increase of 7pc from 1997.

However, three out of ten villages still had no bus service, accounting for 1.75m people.

The survey showed that, throughout the 1990s, 70pc of rural settlements had a village hall or meeting place. This increased to 85pc by last year, mainly due to lottery grants.

The study, carried out every three years, highlighted the decline in rural post offices, with 546 having shut between 1997 and 2000. One in 15 rural households lives more than 2km from a post office.

Statistics for Yorkshire and Humber region show 90pc of rural households are within 2km of a primary school and 8km of a secondary school.

More than 10pc of upland households live more than 12km from a hospital, while 80pc are within 4km of a doctor's surgery.

In the North-East, more families than any other rural area live more than 8km from schools, petrol stations, cashpoint machines and post offices. The most remote areas included upper Teesdale.

Mr Keith Buchanan, Countryside Agency North-East regional director, said: "Although there are welcome improvements, the survey highlights a number of challenges and many people in the more remote areas of the North-East do not have as high a level of access to important services as most other areas of England."

Mrs Pam Warhurst, deputy chairman of the Countryside Agency, said improvements in rural transport and village hall provision showed what could be achieved by investment in rural services, tailored to what people needed.

However, more needed to be done, particularly to provide transport for those settlements with none.

l A £3m rural business fund to help communities affected by foot-and-mouth disease was launched by the government yesterday.

The development fund for rural renewal is run through the small business service and offers grants to entrepreneurs and existing companies.

Bids are sought covering technology training to improve efficiency or widen markets, establishment of business clubs and other support.

Further details are available from the small business service, tel 0114 259 7947.