Road improvements are essential "to prevent congestion crippling commerce", the RAC Foundation said today.

Transport problems were holding back business, the foundation told the British Chambers of Commerce (BCC) national conference in London.

A recent BCC survey showed that 76% of businesses reported increased operating costs as a result of transport failings.

RAC executive director Edmund King said: "We welcome the recent announcements to widen the M25 and M1 but more needs to be done. These essential schemes will not start until 2006.

"The BCC survey clearly shows that transport problems have become a major issue for businesses. The RAC Foundation is also concerned at the dire and growing congestion on our roads so has identified a list of urgently needed improvements to the strategic road network.

"At a cost of around £2 billion a year over 10 years, the programme would provide very good value for money."

Mr King went on: "Road users currently pay £44 billion per year, of which less than £6 billion is spent on roads. These improvements could all be paid for out of half of one year's motoring taxation.

"The Foundation has concentrated on the motorways and trunk roads because, even though they account for only about 4% of the network, they carry around 35% of traffic, including more than half of all road freight movements. This is the core of the national transport system.

"For the longer term, a comprehensive review is needed to establish priorities in terms of the objectives for the network over the next 30 to 50 years."

Mr King said road pricing would not be an alternative to creating extra road capacity.

He went on: "We claim to be the fourth largest economy in the world so surely we can afford a decent road system to support economic growth.

"The Government must not be tempted to prop up the railways with extra expenditure taken from the roads budget and should publish the full economic returns on all road and rail schemes.

"The Government is right to plan ahead to meet the needs for air transport. Businesses need to see a similar vision for strategic roads, which carry the vast bulk of passengers and freight. We don't want growing congestion to cripple commerce."

Wednesday April 21, 2004