GOVERNMENT transport policy is failing fleets, according to the directors of some of the UK's leading companies.

A survey of corporate bosses by the powerful Institute of Directors (IoD) has highlighted the concerns of many businesses about Government transport policy. For example, 70% of those surveyed believe new road building and additional road capacity is part of the solution to road congestion, echoing the sentiments of the Association of Car Fleet Operators which last week called on new Transport Secretary Alistair Darling to reverse his decision not to create new motorways across the UK.

An even greater proportion (87%) of IoD members think fuel duty is too blunt a tool to tackle congestion because it failed to differentiate between rush-hour and off-peak journeys and between rural and urban vehicle use.

However, 73% of the IoD members surveyed think a combination of more roads and congestion charging would improve congestion over the next decade. The same combination was advocated last week in a Government-commissioned report into solutions to the gridlock on the M25, with consultant Halliburton KBR proposing that a road-widening scheme on the M25, in conjunction with area–wide road charging and priority motorway lanes, would ease traffic flow.

The IoD survey also indicated that 68% of company directors see road charging as a mechanism to increase rail volumes at the expense of road traffic – the figure rising to 69% when considering freight transport.

Graeme Leach, chief economist at the IoD, said: 'We have the world's fourth largest economy with an inadequate transport system to match. Our members want to see the Government use its huge parliamentary majority in order to take the tough political decisions that are required.'