An independent committee set up to advise the UK Government on road traffic problems says the economy need not suffer from policies to tackle congestion.

The committee, the standing advisory committee for trunk road assessment (SACTRA), includes academics, business leaders and members from the transport sector.

SACTRA's brief is to consider the links between transport infrastructure and economic growth.

Its report says it is possible to limit traffic without causing economic damage.

Impact assessment

In another finding which will delight campaigners for better railways, the report also says that roadbuilding may not always benefit local economies.

And it says all major transport schemes should be subject to an economic impact report.

Road protests have caused political embarrassment

SACTRA's chairman, Eileen Mackay, said: "What we are saying is that, if the circumstances are right, it should be possible to reduce the rate of traffic growth without harming the economy".

"I think most people involved in transport and the environment can take some comfort from our report.

"But it may not provide much comfort for those with extreme views at either end of the debate.

"We are not saying that transport schemes are bad for local economies, but merely pointing out that some schemes are good while others may not be good."

Instrument of change

An earlier SACTRA report, in 1994, suggested that building more roads led to more congestion, and was influential in persuading the Conservative Government to rethink its policy.

This latest report now goes to the Deputy Prime Minister, John Prescott, who heads the Department of the Environment, Transport and the Regions.

One SACTRA member is Michael Roberts, head of the Confederation of British Industry's industrial policy section.

He described the report's findings as "a victory for common sense".

New roads help competitors, too

"They confirm what CBI members have known for a long time - that in the right circumstances a properly-designed transport project can help increase competitiveness and be good for the economy."

The environment campaign Transport 2000 said the report should give central and local government the confidence to cut traffic, knowing that would bring both economic and environmental benefits.

Andrew Davis, director of the Environmental Transport Association, said he welcomed the report and was not surprised by it.

He told BBC News Online: "If an area has a relatively weak economy new roads can decimate it, because they open it up to competitors".