Traffic congestion in the East of England could cost businesses and residents £2bn a year by 2021 unless urgent action is taken, according to a study published this week.

The Transport Economic Evidence Study (TEES), published by the East of England Development Agency (EEDA), shows the economic costs of traffic congestion and where it is having the greatest impact.

It concludes that the cost of congestion across the six counties of the East of England was £1bn in 2003, and this could double to over £2bn by 2021.

A main finding of the study is that measures to manage demand for travel by road and investment in additional rail capacity will do more to reduce the cost of congestion in the long term than simply relying on new road infrastructure.

Targeted road capacity improvements in some parts of the region will lead to economic benefits, but the report states that ‘the economic returns from this approach diminish once the key constraints on economic productivity have been relieved’.

The report identifies particular hotspots where congestion is causing the most damage to the regional and national economy, and calls for intervention in a number of priority corridors. The focus is on key radial routes to London and some key links to Cambridge.

Of the seven ‘engines of growth’ in the East of England, the TEES found relieving congestion in the London arc would have the most impact on improving the regional and national economy – if congestion is reduced by 10% the UK economy would benefit by £50M per year.

Minister for the East of England, Barbara Follett, said: ‘In our region we need to develop and implement more innovative approaches to the way we use our major roads.’