Speed limits across the country are to be changed, with the 60mph ceiling on rural roads cut in many areas in an attempt to save lives.

The Government has asked local authorities to reconsider limits on all roads, with the introduction of more 20 mph limits in urban areas currently covered by a limit of 30 mph.

Guidance issued yesterday by the Department for Transport also told authorities to consider raising limits if it could be done safely. It suggested that if speed limits were unrealistically low the system could be ineffective, increasing risk.

The overall tone of the guidance, however, is that local traffic authorities should reduce limits, particularly in rural areas, if they believe that by doing so they can save lives.

The changes, revealed by The Times last week, mean that all traffic authorities will have to review all speed limits by 2011. The three national limits — 30 mph on street-lit roads, 60 mph on single carriageway roads and 70 mph on dual carriageways and motorways — will not be changed, but local authorities are being asked to set local limits where they consider the national limit to be inappropriate.

Stephen Ladyman, the Transport Minister, said that realistic and consistent limits helped to keep traffic moving freely and safely. “Our new guidance encourages lowering speed limits where the evidence warrants it, but equally traffic authorities should consider increasing limits if it can be done safely,” he said.

The national speed limit in urban areas is 30 mph but the guidance makes plain that the Government will support and encourage 20 mph limits where there is a particular risk to vulnerable road-users. It emphasises, however, that a 40 mph limit may be used where appropriate, and in exceptional circumstances — on higher quality roads where there is little or no development — 50 mph can be considered.

A representative of Brake, the road safety charity, said: “We think that anywhere where children could be playing shouldn’t have a speed limit of more than 20 mph. It’s obvious that a lot of winding country roads that have a 60 mph limit should get put into a lower band.”

An AA study found that the 12 roads with the highest crash rates last year were all single carriageway “A” roads in rural areas.

A spokesman for Direct Line, the insurance company, which has called for the standard rural road speed limit to be cut to 40 mph, said: “We think it’s potentially a good idea to let local authorities decide speed limits as they would be more au fait with local roads. People tend to drive at the speed limit so it’s important that the limits are appropriate. At this time of year a lot of motorists are driving on rural roads, and often aren’t used to driving in the countryside. People simply don’t realise that you need to drive differently there. We believe that 60 mph is too quick for some of these roads.”

A survey published last week by Direct Line indicated that three out of four motorists thought that the 60 mph speed limit on rural roads was too high. More than a quarter admitted breaking the speed limit on country roads.

Figures from the Department for Transport indicate that deaths on rural roads have shown the least decline over the past year. While fatalities on built-up roads were down by 4 per cent on 2004, fatalities on non built-up roads decreased by 1 per cent.

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