The move would help communities where prices have shot up and villages where properties are left empty for long periods, says Stuart Burgess in his state-of-the-countryside report.

Lack of affordable homes remains the biggest issue for rural people, says Dr Burgess, chairman of the Commission for Rural Communities.

His report also calls for the Government to set up a commission on the future of hill farming and after recent bluetongue and foot and mouth outbreaks and last summer's flooding he says a standing recovery fund should be set up to help businesses recover from similar events.

His council tax proposals aim to remedy the situation where revenue goes into a council's general coffers and can be spent on anything.

Problems created by large numbers of second homes were recognised in 2005 when Yorkshire Dales national park bosses introduced a ban on new properties being sold to outsiders amid concerns local people could no longer afford to buy.

The latest call comes as Ministers consider drastic curbs on second home ownership that would stop people buying in sought-after rural areas.

An inquiry commissioned by Prime Minister Gordon Brown will recommend local authorities get power to prevent outsiders buying property they do not intend as a main residence, it was reported yesterday.

The scheme could be piloted in areas worst hit by second home ownership, including the national parks in Yorkshire.

Dr Burgess said councils should be able to create a separate fund from council tax on second homes for local re-investment.

The proposal was backed by Paul Rouse, who lives near York and set up the Second Home Owners' Association to defend owners against "wild allegations" of the damage caused to rural communities by second homes..

"We want to draw attention to the facts of the case rather than the myths," he said.