An increase in the uptake of cycling and walking could be key to reducing urban congestion, the Government has been advised.
And while buses remain a cost-effective way to increase transport capacity, "there will always be a role for the car".
The statements are contained within a report by the Cabinet Office Strategy Unit, published today ahead of Transport Minister Sadiq Khan's speech to the Core Cities Summit in Liverpool.
Among its findings, the Strategy Unit concludes that the impact of transport on people who live and work in cities extends beyond mobility and the effects of congestion. While the economic cost of urban congestion is known to be around £11 billion each year, the combined cost of poor air quality, ill health and road accidents is a further £40 billion, the report says.
The unit has issued a challenge to "decision makers at all levels" to confront the problems of congestion, poor air quality, poor health, emissions and unpleasant urban spaces, and to see them as part of a wider solution.
It says that a long-term, shared vision for urban transport is becoming increasingly important, and suggests that cities should offer a wider choice of journey, encourage walking and cycling, and transform quality of life through making streets and public spaces "more enjoyable places".
Reacting to the report, the Campaign for Better Transport said that the need for a new policy direction on urban transport was urgent.
"[The report] shows how important a good transport system is for the health and quality of life of people living in towns and cities," said campaigns director Richard Hebditch.
"But the Government needs to challenge local authorities more to improve transport, and equip local transport authorities with the powers, funding and capability to really make a difference on transport," he added.