BUSINESS leaders have warned that traffic congestion and the threat of gridlock in city centres is emerging as one of the worst burdens on the North-East economy.

Regular nose-to-tail traffic problems on the A1 Western Bypass around Newcastle and increasingly frequent congestion on the A19 on Wearside were highlighted yesterday by the North East Chamber of Commerce as being particular worries for the future of the region's economy.

The chamber's Tyne and Wear committee has called for greater measures to ease traffic flow following independent reports that Newcastle will become gridlocked by 2014.

Members welcomed moves to improve the busy junction of the A1231 and the A19 at the gateway to Sunderland.

However, they highlighted the lengthy delays in publishing the report following the inquiry into the construction of a second Tyne Tunnel.

Members claim that, even though many businesses rely on roads for the movement of goods or services, a significant number are suffering because freight is trapped in jams at major entry points to Tyne and Wear.

Chris Jobe, the chamber's Tyne and Wear committee chairman, said: "There is concern amongst our membership about the increasing volume of traffic and the increasing difficulty in moving goods and services around.

"There is a real need to improve what we have in order to preserve our connectivity and make us more attractive to business."

The committee has proposed a more structured approach to car sharing, seeing the subsequent reduction in cars in use as a way of easing congestion.

Mr Jobe said: "If we were all to use our cars less and public transport more, often there would be tangible benefits for business.

"Car ownership is expanding and the region is looking increasingly attractive to those who would like to make the North East their new home.

"We all have to face the fact that there will be a limit after which there will have to be some degree of regulation to limit road traffic or massive investment."