Business and Ministers at odds over roads

They added that the focus will be on "sweating" existing routes rather than costly new schemes.

In an official response to a report by MPs that warned of the need for creating more room on major roads, the Government said it will look at "innovative methods" to pay for additional capacity.

Although Ministers have ruled out a national road pricing scheme for existing routes, Transport Secretary Philip Hammond has previously said he would be "open" to allowing private investment and tolls.

"The climate for significant publicly-funded investment in the road network is extremely challenging given the current fiscal circumstances," the response said. "However, there are clearly locations where congestion is causing problems for motorists, businesses and nearby residents.

"We will explore the full range of opportunities, including looking at innovative methods for funding additional capacity and making greatest use of out existing assets."

Businesses accept transport spending cannot be immune from cuts but leaders are keen that major schemes that could help the economy recovery are not jettisoned.

Nick Pontone, policy director at Yorkshire and Humber Chambers of Commerce which represents 12,500 firms, said: "Schemes such as Leeds trolley bus and access to our ports and airports generate more in economic benefits than they cost to build.

"Yorkshire and Humber must also get its fair share.

"The Government would be applauded in our region if it closed the longstanding transport investment gap between Yorkshire and other regions."