In a withering analysis of the Government's rural policy "failure", experts have told MPs rural issues have been marginalised since a Whitehall shake-up which promised to make them a "central pillar" of policy.

Since being set up after the 2001 foot-and-mouth crisis the Department for Environment, Food and Rural Affairs (Defra) has concentrated on tackling climate change and environmental issues, while Whitehall is accused of having a "naive and simplistic" belief that rural areas are simply about farming, tourism, commuters and the retired.

The criticism comes from experts at Newcastle University's Centre for Rural Economy, in a submission to a Commons select committee.

Only an overhaul of the department will allow rural economies to prosper, said Professors Neil Ward and Philip Lowe.

"Where rural affairs and rural development were once envisaged in a central and integrating role within the new department, they have effectively been marginalised by higher profile agendas around climate change and sustainable development," they said.

"While the intention had been to give greater prominence to rural affairs, the accident of history is that establishing Defra has had the opposite effect."

The professors were providing evidence to the Commons Defra select committee, which is beginning an inquiry into the potential of England's rural economy.

They said when Ministers have dealt with the countryside, they have focused too much on agricultural policy and neglected wider rural development.

Too often rural communities are seen as dependent on urban areas instead of being considered sources of dynamism or entrepreneurship themselves.

"The result is that the major drivers and problems of rural economies are not properly targeted by business support, training provision and infrastructural investment," said Prof Ward.

The experts said there is a need for improved rural proofing of Whitehall policies and the structure of Defra must be overhauled if progress is to be made. They acknowledged the importance of the environment, but said it could have been put in a department with energy and transport instead of being allowed to overshadow farming and rural affairs.

There was also criticism of Defra from the Commission for Rural Communities, which said in its evidence there was "little evidence" government departments have been persuaded to introduce significant rural proofing of policies.

Its chairman, Stuart Burgess, said rural economies needed greater recognition across government and from business leaders, and called for a renewed commitment to rural proofing.

But last night a Defra spokeswoman insisted: "The Government has not lost interest in rural people or communities and Defra remains firmly committed to strong rural communities."

She said the Government had committed £3.9bn for 2007-13 through the new Rural Development Programme, including £300m specifically designed to support the rural economy and rural quality of life.