Gordon Brown was today expected to hit drinkers, smokers and motorists in the pocket - again.

In his eighth budget, the Chancellor was set to put 1p on a pint of beer, 2p on a litre of petrol and 10p on a packet of 20 cigarettes, pushing the average price to £5.

Mr Brown was also lining up a 3p increase in the duty on a bottle of wine, though spirits were likely to be frozen at the current rate.

He was expected to steer clear of unpopular tax hikes, such as another increase in National Insurance contributions, to fund a £10 billion black hole in spending plans.

But Conservatives were keeping a close eye for the introduction of any new "stealth taxes".

Speculation has included raising the upper rate of stamp duty on house purchases, taxing overseas holiday homes, freezing the top-rate tax threshold, squeezing small businesses and closing alleged tax loopholes.

The Tories claim allies of the Chancellor are responsible for some of the rumours, aimed at casting him in a better light if he does not pursue some of the more extreme suggestions.

Mr Brown will win cheers from his own backbenchers by restating the adult rate of the minimum wage will be increased from the present hourly rate of £4.50 to £4.85 in October.

The youth rate - which applies to 18 to 21-year-olds - will be increased from the present hourly rate of £3.80 to £4.10 and a new rate for 16 and 17-year-olds will be introduced at £3 per hour.

Mr Brown will also back a report by Sir Michael Lyon to shift an initial 20,000 government jobs out of London to the regions.

And the Chancellor is expected to recommend that an extra 100,000 new homes need to be built each year to keep up with population growth and reduce house price inflation.

The Barker report, published earlier today, said the low level of housebuilding is responsible for rising homelessness and rampant house price inflation.

Mr Brown is expected to back its recommendation to double the output of social housing, at a cost of £1.5 billion.

Mr Brown will also restate plans for tax incentives for employer-backed childcare and to increase Child Tax credits for families on very low incomes by as much as £3.50 a week or £180 a year per child.

The City will focus on Mr Brown's predictions for growth and borrowing.

In the April 2003 Budget, the Chancellor predicted a budget deficit - public sector net borrowing - for this year of £27 billion.

But in the December 2003 pre-Budget report the figure had gone up by an astonishing £10 billion to £37 billion.

Wednesday March 17, 2004