JOHN PRESCOTT announced a novel scheme yesterday to help people in rural areas to use public transport - paying for taxis for them to get to bus stops.

The Deputy Prime Minister and Secretary of State for the Environment, Transport and the Regions revealed that pounds 10m had been allocated in the Budget for the idea to be tried out.

"I want to look at how, on the bus services in rural areas, you can begin to develop cars that could be on contract to take you to the bus point or the train point, rather than forcing bus operators to try to justify going through every village," he said, speaking during a visit to India.

He said calling a cab to a connecting bus or rail service would be included as part of the fare.

"It's a new concept about trying to meet the requirements of the rural areas. If we do that with bus companies and increase their passengers we can come to some agreement about this. It would be a seamless journey in which I envisage cars and buses working effectively to meet people's needs.

"You could get a contract with someone in the village who might be a taxi driver, so that if a passenger was going for the 11.45am bus you could pick [them] up and make arrangements to pick them up when they come back, and it's all in the one fare. We are looking at how we might do it."

Mr Prescott said the Government was responding to protests from rural communities - many of which have seen bus services cut since privatisation.