An increase in gridlock and the rising costs of public transport are crippling industry in the West Midlands, according to a major new report.

Businesses from across the region have called on the Government to do more to tackle congestion and poor public transport. They have also heavily criticised the recent increase in rail fares, claiming that business will be severely affected by the move.

Almost 90 per cent of businesses have seen their operating costs shoot up because of congestion, according to a new survey from the Confederation of West Midlands Chambers of Commerce.

The study also reveals that 92 per cent of West Midlands firms say regional road congestion is a problem for their companies. Almost half (45 per cent) of firms have lost business because of poor transport links and four out of ten said an inadequate transport network has limited the ability to expand their businesses.

The Confederation's chairman David Burton said: "The region's businesses continue to be heavily reliant on the road network, but congestion and delays are costing them billions of pounds a year.

"They need reliable and predictable journey times for the movement of people and goods but they are not getting that from the roads or from public transport and it is a problem that will only get worse unless drastic measures are taken."

The survey showed 85 per cent of West Midlands companies rely heavily on the road network compared to a national average of 75 per cent.  But more than 60 per cent do not perceive public transport to be a viable alternative to the road network.

However, eight out of ten businesses said that if reliability and punctuality improved they would use public transport more often.

Nearly 70 per cent said cheaper fares and better discounts would also persuade them to use buses and trains.

Almost all businesses (94 per cent) said more investment is needed in public transport now. However, fare rises are deeply unpopular among business, according to Mr Burton.

He criticised the cost of using public transport, particularly after last week's announcement that rail fares are to increase by about five per cent. He said: "There is definitely a willingness there from the business community to use public transport, but only if it is up to the high standards we see elsewhere in the UK and Europe.

"High prices are just as much a concern as punctuality and this is something the operators should be looking at as a matter of urgency.

"The announcement that rail passengers face an above-the-inflation-rate rise in rail prices from January flies in the face of these concerns.

"If Government seriously wants to promote public transport as a viable alternative to private car use, then trains need to become considerably cheaper now. These increases will no doubt lead to further congestion on our roads."

He called on the Government to commit to a "30-year national integrated transport strategy" which would address years of under-investment in the West Midlands transport network

He said: "It is important the government commits to a many-pronged strategy that seeks to promote the use of public transport where relevant, but also addressed serious capacity issues across the region's road network."

Mr Burton said that businesses across the region welcome the extension of the M42 Active Traffic Management system to other parts of the Midlands' motorway network.

However, the government would have to consider widening some of the region's most important motorways, including the M6, he claimed.

The survey identified the morning school run as one of the main causes of congestion on local roads, although the survey also blames the sheer volume of traffic for delays on A-roads, trunk roads and motorways.

The Confederation's report questioned thousands of businesses who are members of the seven Chambers across the Midlands.

The organisation speaks for 13,500 businesses, from large international groups to small emerging companies.