Over 80% of small rural businesses have seen their costs rise and half have experienced a decrease in trading, according to a poll by the Federation of Small businesses (FSB).

The survey of over 300 small firms in rural communities also revealed that the closure of one small firm can have a large impact on the local area. Over 40% of the businesses surveyed depend on one or more sole food shop, general store, petrol station, post office or pub in their local community.

The FSB is calling for a rural recession rate relief scheme to help these businesses in the guise of a top up from the Treasury of the non domestic rates pool, so local authorities can give 100% rate relief to small rural businesses across England.

"Rural businesses have been quietly suffering during these testing times just as much as big, city businesses - but behind the dramatic headlines of big business failures," said Linda Walton, FSB Rural Affairs Chairman.

"These figures prove that the collapse of one small firm in a small town or village can have a devastating impact on the entire community."