Up to an extra £1 billion a year could be spent on fixing potholes and other road maintenance if the Government invested two pence per litre of existing fuel duty, the body that represents councils has suggested.
The Local Government Association (LGA) said investing fuel duty back into road maintenance would allow councils to bring the country's crumbling highways up to scratch within a decade.
The LGA, which represents more than 370 councils in England and Wales, said that although the Government recently responded to calls for extra funding, it was "simply not enough", with local authorities only being able to "patch up" problems rather than carry out longer-term preventative work.
Among councils to get an extra slice of money set aside to mend potholes is Northamptonshire, which will get £3.3 million after it set up systems to track pothole repairs in real time, allowing it to deploy teams and co-ordinate work more effectively.
Hampshire, where new pothole-fixing equipment can be converted to salt icy roads in winter, gets around £6 million, while Lancashire will receive £4.9 million.
Some £10 million is also earmarked for London, the Department for Transport said. The money must be used to repair potholes or ensure that they do not appear in the first place. Councils will also have to publish updates on works every three months, and all work has to be completed by March 2015.
A greater share of a multi-million pound fund being set aside to repair the country's potholes is to be handed to England's "model" councils.
More than three million potholes will be filled in by March next year as part of the biggest investment in roads since the 1970s.
The Government has set aside £168 million to mend the nation's broken roads, spread across 148 councils. Coucils will get a share, but extra will be given to those demonstrating "best practice in highways maintenance", including bringing in specialist machinery or setting up dedicated repair teams.
A new report estimates the "catch-up" cost of repairing potholes and getting the local road network back into reasonable condition has risen to £12 billion.
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The government has responded to local council demands for emergency cash to deal with a "daunting trail of destruction" on England's roads after England's record wettest winter by promising an extra £140 million to deal with the problem.
Most councils are expected to receive the extra money by the end of this week in a bid to ensure works are completed before the summer holidays.
In return they will be required to publish on websites by the end of August details of how it was used.
Councils are to get an additional £140 million to fix roads damaged by England's record wettest winter, the Government announced.
Transport Secretary Patrick McLoughlin said a fund specifically targeting the worst-hit areas would be raised by £36.5 million to £80 million.
A former award winning road worker turned anti-pothole campaigner has told Daybreak Parliament needs a "step change" in its "mind set" if it is to tackle the pothole problem plaguing Britain's roads.
Mark Morell aka Mr Pothole blamed "successive underfunding for decades" and "bad weather" for leaving UK drivers dodging 295 square miles of potholes.
Mr Morell has already set up an epetition to be handed to the Department for Transport demanding they deal with the pothole epidemic.
According to data on Britain's "pothole epidemic" obtained by breakdown service Britannia Rescue:
- Last year there was a 79% increase in pothole related compensation claims, in comparison to 2011/12 figures.
- One of the country's largest local authorities, Lincolnshire County Council, reported pay-outs amounting to more than £358,665 in 2012/13.
- The average repair bill for pothole damage to a vehicle came to £140.
- The most common problems were tyre damage, damaged suspension and damaged wheel rims.
Motorists need to protect themselves from potholes by "reducing their speed" and report damage to their local council, the head of breakdown service has said.
Britannia Rescue raised concerns over the effect potholes were having on drivers and warned them local authorities were already facing "difficult choices".