The Prime Minister yesterday called for a renewed partnership with business after admitting that industry was "profoundly concerned" about the state of the transport system.
Tony Blair said there were also worries over red tape and the direction of Europe.
In a candid speech to the national conference of the CBI, Tony Blair said there was still a "vast amount" of work to do to improve the UK which meant pressing ahead with public sector reforms.
Most business people who met the Prime Minister told him they welcomed the UK's economic stability but worried about a new European Constitution, were not persuaded that investment in public services was producing results and had concerns about regulation and transport.
Mr Blair pointed out to the captains of industry that inflation, interest rates and unemployment were at their lowest levels for a generation and argued that investment in schools and hospitals was making a difference.
But he said the economy needed to be taken to a higher level in the future and admitted he "desperately" wanted business to help find solutions.
The Prime Minister, received politely by the 600 delegates at the Birmingham conference, pledged to tackle George Bush on US steel tariffs when the President visits the UK tomorrow.
UK firms have complained of protectionist policies in the US, including tariffs on foreign steel products.
The CBI also revealed that a number of US companies based in Scotland were coming under pressure to switch production from this country because of a "buy America" campaign launched by the US Congress.
Trade and Industry Secretary Patricia Hewitt told the conference that the steel tariffs were "damaging" and should be abandoned in a return to free and fair trade.
The Prime Minister faced a series of questions from businessmen after his speech and listened to complaints about red tape.
Mr Blair said he could not shield manufacturers from growing international competition and went on: "We are operating in a highly competitive world market."
Tuesday November 18, 2003
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