BUSINESS and investment across the country is suffering real and unnecessary damage because the UK's transport infrastructure is failing both industry and commuters - including company car drivers - according to a new report. And the joint AA-Confederation of British Industry report compiled as a result of a survey of 242 local authority economic development officers says urgent improvements will cost at least £11 billion a year.

The damning verdict in the report 'Transport Links and the Economy' comes just weeks before the expected June or July publication of the Government's long-awaited transport white paper. The survey reveals that road congestion is clearly the major transport issue faced by employers, while for employees the two major issues are poor public transport giving no alternative to cars and road congestion.

AA director of policy John Dawson said: 'Recent Government-sponsored research has questioned the link between a modern economy and good 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. However, the signs are that Government is not prepared to take the issue seriously and invest at the levels of our European competitors.'