A failure by government to improve the transport system is "tarnishing" the UK's business reputation, industry leaders have warned.

A survey of senior business people by the Confederation of British Industry has found that 85 per cent believed investment decisions were influenced by the quality of transport, while 70 per cent considered the UK system to be poor.

Published on Monday, the report also found that while just under a fifth of British drivers were likely to encounter congestion on their way to work, the same was true of only seven per cent of French drivers and four per cent of commuters in Germany.

While the UK has doubled its motorway network over the past 30 years, France has increased its system by over four times.

"The legacy of under investment in transport by successive governments is well known, but transport has been a thorn in the side of the UK economy for too long," said CBI deputy director general, John Cridland.

"The existing system has been pushed to breaking point. Despite completion of some individual schemes, we have not made enough progress expanding capacity and encouraging more efficient use of our infrastructure.

"I accept that infrastructure projects take time to deliver, but progress is painfully slow. Meanwhile our competitors are pressing home their advantage."

The rail network also came under fire in the study - reliability in the UK has hit 83 per cent, behind the US at 93 per cent, as well as France and Germany at 91 per cent.

Ministers were criticised for slow decision-making on Britain's sea and air links.

Ports in the UK could run out of capacity within the next three to five years, the report warns, while Heathrow is the only major airport in Europe to see a fall in the number of destinations served over the past decade.

"If the government does not invest in the UK transport system, international companies will not invest in the UK," added Cridland.

"Ministers must ensure money is spent wisely, implementing projects that deliver real improvements on budget and on time."

The Liberal Democrats called for a "clear vision" from the government on public transport.

"This report confirms what passengers, commuters and hauliers have known for a long time: British transport is held up, not joined up," said transport spokesman John Thurso.

"The state of the transport network costs British business too much time and money, and causes British passengers too much stress.

"The last Conservative government left British transport in a shambles. But after 6 years, surely we can expect Labour to have a clearer view."Mend and make do is as discredited as predict and provide.

"We need a clear vision for our future transport system. Without it Britain will continue to bumble along."