Lord Haskins has set out plans for a radical overhaul of the way the government delivers rural services.

In a report published on Tuesday the Labour peer called for a radical restructuring of the Department for Environment, Food and Rural Affairs.

The government commissioned blueprint recommends a clear distinction between policy development and delivery.

And it calls for the delivery of key services to be devolved to a grassroots level, with local bodies taking a greater role.

Lord Haskins concluded that regional development agencies should have the lead responsibility in co-ordinating rural business support and advice.

Under his blueprint local authorities and local partnerships should have the main responsibility for the delivery of services to countryside communities.

The report also called for a merger of the Countryside Agency and English Nature and the Rural Development Service to form a new "integrated agency" - a body into which the Forestry Commission could also be merged.

In her response to the report, environment secretary Margaret Beckett sought to play down fears that the changes would undermine the ability of independent watchdogs to speak out on government policies.

She said that "policy advice can be particularly valuable when it comes from those involved in delivery".

"I attach huge importance to independent advice from my department's agencies and partners. I do not intend to lose that advice," Beckett added.

However, the rural affairs secretary confirmed that changes to her department's executive agencies would go ahead.

The integrated agency will be "a single, stronger authoritative body", she said.

Beckett claimed the new agency would accelerate the integration of work on biodiversity, natural resource protection and landscape issues in order "to improve the environment across rural, urban, marine and coastal England".

"It will provide independent policy advice and implement policy within the framework of the government's approach to sustainable development," said Beckett.

The Cabinet minister also indicated that a "much smaller organisation" could take over the Countryside Agency's role in offering advice on the issues affecting people in rural communities.

The government will now put in place a plan to implement the proposals, which it aims to publish in the spring.