GOVERNMENT advisers have concluded that restricting or reducing road traffic will not automatically damage the economy. Three years' research by the standing advisory committee on trunk road assessment (SACTRA) has led it to conclude that 'well targeted policies can reduce traffic levels without harming economic growth'.

It added: 'Many transport improvements will lead to increased economic activity in addition to other benefits, the extent of which will depend on local circumstances.' The committee recommends the Government assess the economic impact of any road-building schemes more thoroughly before starting them, a view supported by the Confederation of British Industry. But the AA says the committee has provided 'do nothing' solutions.

But Paul Watters, the AA's head of roads and transport policy, said: 'Innovation and the updating of our existing transport infrastructure are essential, but new roads, where it is economically and environmentally necessary, cannot be ruled out.' Michael Roberts, CBI's head of industrial policy, said: 'The Government now needs to do more than just think about changing the way transport projects are evaluated. After decades of under-investment business wants progress on much-needed improvements to the transport system.'