Martin Broughton, president of the CBI, said at the organisation's annual dinner that employers were become increasingly frustrated at the government's failure to tackle "a generation of under-investment in roads and other infrastructure".

He told an audience including the chancellor, Gordon Brown, that China was building roads, airports and power plants to underpin its economic success while in Britain planning delays meant projects like Terminal 5 at London's Heathrow airport took 17 years from initial planning to final construction.

Mr Broughton also highlighted delays to the Crossrail project across central London which has been under discussion for more than 10 years.

"We seem to be prepared to spend £10bn on staging the Olympics in east London, but can't find the money to spend on a railway through London to get there," he said. "The bottom line is we invest less in our infrastructure than any other major European economy. What assets we do have are contracting, or deteriorating."

The British Airways chairman said business hoped the energy and planning White Papers, expected soon, would help smooth the path of much needed infrastructure projects.

The Department of Transport said in response to the speech that public expenditure on transport was more than 50% higher in real terms than in 1996/7 and that this year capital investment in transport would total £6.5bn.

Premiership contender Gordon Brown used the event to bolster his leadership campaign with a promise to increase the country's skills base.

He told the 1,600-strong gathering he aimed to double the number of apprentices over the next 12 years.

"Today over 250,000 young people are on full apprenticeships, including over 100,000 on an advanced apprenticeship. And a quarter of 14-16 year-olds - some 320,000 - already do vocational qualifications... But looking to the future I believe we can offer not just more but higher quality practical and work-related learning that prevents young people falling through the net.

"With the introduction of the new diplomas, up to 40% of young people, including in engineering, alongside a new entitlement to get on an apprenticeship for all those who have the appropriate skills, we are heading towards our commitment to 500,000 apprentices by 2020."