Roads Minister Guy Opperman has launched a street works consultation on the tougher measures to penalise utility companies from letting roadworks overrun.
The new regime will extend the current £10,000 per day fine for over-running street works into weekends and bank holidays.
Currently, utility companies are only fined for disruption on working days.
The planned measures could also double fines from £500 up to £1,000 for companies that breach conditions of the job, such as working without a permit.
The Government said it would also direct at least 50% of money from lane rental schemes to be used to improve roads and repair potholes.
As a result, the measures could generate up to £100m extra over 10 years to resurface roads while helping tackle congestion.
Launching on National Pothole Day, the consultation is part of a series of measures from the government’s Plan for Drivers, a 30-point plan to support people’s freedoms to use their cars, curb over-zealous enforcement measures and back drivers.
The measures follow the biggest ever funding uplift for local road improvements, with £8.3bn of redirected from HS2 funding – enough to resurface over 5,000 miles of roads across England.
Transport Secretary, Mark Harper, said: “After the largest ever increase in funding for local road improvements, this government continues to back drivers with these new measures from our Plan for Drivers.
“Our new proposals seek to free up our roads from overrunning street works, cut down traffic jams and generate up to £100 million extra to resurface roads up and down the country.”
In addition, the government plans to make all temporary, experimental or permanent restrictions on traffic digital.
Making these digital means they must now be added to satnav systems, ensuring drivers have the most up-to-date information, making journeys easier and paving the way for more reliable autonomous vehicles.