It said measures such as "staggered" commuting to work, using car-sharing, and working from home need to be explored to help ease congestion.
The CBI has also called for US-style yellow school buses to cut school-run congestion.
The investment in road infrastructure should focus on congestion points, the industry body said, and there should be greater use of private investment to help build road improvements. It further suggested that road pricing should be seriously considered with tolls set up on new motorway lanes and A-roads.
CBI estimates that road congestion due to the tremendous growth in vehicular traffic costs the economy £7-£8bn a year. This is likely to more than double by 2025 unless more action is taken to tackle the problem. CBI deputy director-general, John Cridland, said: "We need a radical overhaul of how we travel and manage our road system if we are to do more than simply tinker at the edges. Merely slowing the endless rise in congestion is not enough."
