In a new document, the leading motoring organisation also proposes a number of new funding solutions and more transparent motoring taxation. The publication follows the Government's own Green Paper - The Way Forward - and coincides with the launch of Labour's policy document - Consensus for Change.

The RAC proposes a radical shake-up in the way road transport is managed with strategic responsibilities remaining with the Department of Transport, but devolution of many executive powers to local authorities. While the DoT would be responsible for an 'economically strategic network' of motorways and major trunk roads, local authorities would look after secondary roads.

Other proposals include a scheme for separate transport rates - identified within the council tax and business charge with funds ring-fenced for transport purposes and charging public utilities 'lane rental' for any work which disrupts traffic flows. The paper also suggests the adoption of a more consensual, long term national transport policy formally approved by Parliament to end the current 'stop go' approach to transport investment of recent budgets.