Business leaders have urged George Osborne to use windfall money to spend £1.5bn on short-term measures, such as filling in potholes on roads, to spur growth.
Ahead of the Chancellor's Autumn Statement next Wednesday, the Confederation of British Industry called on Mr Osborne to do more to drive growth through targeted spending and tax measures which should boost business investment.
“The CBI fully supports the Government’s deficit reduction plan. This is critical for the UK to keep the confidence of international markets," said CBI director-general, John Cridland.
“However, the Government does have additional resources available - it underspent by £7.8bn last year and will receive a windfall of up to £4bn from the 4G spectrum auction next year."
He suggested that £1.5bn of this money should be spent on "short-term, high-impact measures to support growth", including local government spending on road maintenance and scrapping stamp duty on AIM shares to encourage investment in medium-sized businesses.
The CBI wants the Government to commit £200m for local authorities to upgrade local roads, with work commencing next year.
Last month, the CBI urged the Government to take steps to promote investment in Britain's roads . It warned that the UK economy was already losing up to £8bn each year from congestion on the roads, which could potentially rise to £22bn by 2025.
In its submission ahead of the Autumn Statement, the CBI also called on the Chancellor to get the Government's proposed £1bn business bank up and running as soon as possible.
“There is a consensus emerging that a Government business bank can help ease the transition to a new normal of business lending," said Mr Cridland.
The CBI's submission follows other business bodies calling on the Chancellor to use next week's statement to tackle the financing constraints that are hampering recovery.
The Federation of Small Businesses and the manufacturers’ organisation EEF said it was a crucial point for George Osborne, and priorities should include improving access to finance for small and medium-sized enterprises.