Business and investment in Greater London is suffering unnecessary damage because the UK's transport infrastructure is failing industry and commuters, according to a survey of local authority economic development officers.

The damning verdict is made in a joint AA and CBI report, Transport Links and the Economy, published this week.

The report cites road congestion and the need to improve major roads as the key transport problems facing local economies. It also states that urgent improvements will cost at least £11 billion nationally.

In London, 50 per cent of economic development officers cited road congestion as the biggest transport problem facing employers. Forty four per cent said that congestion was also a major problem for employees, but 50 per cent say employees in their area had no public transport alternative to the car.

Eighty nine per cent of the economic development officers believe that it may be necessary to restrict some road traffic movement in London, however, they believe only 56 per cent of local businesses would be in favour of this.

They also want to see the development of the Underground and better cross-London links for passengers and freight. In east London they believe that another Thames crossing and improved rail and motorway link would benefit business.

Transport problems in Greater London not only affect business in the capital but also elsewhere in the UK. Economic development officers in the rest of Britain say that some transport links in London affect business in their areas. Those examples cited include the M25, freight and passenger rail links to and across London and rail access to Heathrow Airport.

John Dawson, the AA's director of policy, said: "Recent government-sponsored research has questioned the link between a modern economy and transport links. But the AA-CBI report has shown that there is an urgent and compelling need to get money into the UK's woefully under-financed transport system.

"It is time to reform the way the transport network is funded. There must be a closer link between the money raised from road users and investment in a properly integrated transport system."

CBI head of industrial policy Michael Roberts added: "Business concern about the poor quality of our transport network is well known. This survey shows that it is a concern shared by local government.

"Transport links are seen as important to the creation of jobs and wealth. It is a clear message which should be reflected in an integrated transport strategy."

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