Business support the Government's efforts to cut the UK's deficit, but now wants spending to be targeted on transport, according to research.
A survey of 300 firms by the British Chambers of Commerce (BCC) also identified finance and housing as priorities for the coalition.
Two-thirds of those questioned said the emergency Budget struck the right balance between spending cuts and tax rises, although a similar number believed the cuts would hit their profits.
David Frost, director general of the BCC, said: "Business understands that the next few years are going to be acutely painful as austerity measures take hold.
"Local communities are going to be impacted, but reducing the unsustainable deficit - with a focus on spending cuts - is the right way to return our public finances to health and restore confidence.
"However, deficit reduction alone is not enough to secure recovery. There will now need to be a relentless focus on ensuring business is able to deliver growth, create jobs and drive a lasting recovery.
"Limited spending will have to focus on areas that boost productivity - transport, innovation and skills. Interest rates will have to stay low, burdensome new employment red tape must be blocked, and we will have to generate serious growth across all regions of the country."
