Milking the middle class: Darling to cash in with tax rises on alcohol and motoring

Gordon Brown was facing a twin backlash last night over Budget plans to raise taxes on alcohol and motoring which are clearly aimed at the middle classes.

The Tories accused the Prime Minister of leading "a war against the middle classes" by pushing up the cost of living with extra duty on beer, wine and spirits.

Campaigners predicted law-abiding drinkers will resent being made to pay for the abuses of the binge-drinking minority.

Instead of tackling the problem of drunken yobs, they say Alistair Darling is simply looking for ways to fill a black hole in the Government's finances.

The Chancellor will face the wrath of motorists as well if he goes ahead with a 2p per litre increase in fuel duty and a further crackdown on gas guzzlers.

Again, he will be accused of attempting to disguise a raid on the middle class - this time by claiming he is helping the environment.

Among the other predictions for the Budget are:

• Help for pensioners who rely on pre-paid energy meters, • No increase in thresholds on stamp duty,

• Air passenger duty to be replaced with a tax on airline journeys,

• Fixed-rate mortgages for up to 25 years to be made more available.

On the eve of his first Budget, there was speculation in Westminster that Mr Darling will impose real-terms increases on alcohol duty in coming years.

Critics accused him of endorsing claims that binge drinking is a "middle-class problem" after ministers last year launched a campaign to target those who enjoy an evening glass of wine.

The Conservatives stole a march on Mr Darling last week by calling for targeted taxes on strong drink such as alcopops similar to ones introduced in Germany.

They also moved to put pressure on the Treasury by saying any duty increases should be offset by tax cuts elsewhere to stop them being used as a "stealth tax".

Last night, Treasury sources insisted Mr Darling was not convinced that the tax system is the right way to tackle binge drinking.

Poll evidence released last night showed any move to increase duty above inflation could come at a devastating political cost for the Prime Minister.

Results of an ICM for the Wine and Spirit Trade Association survey showed one in four - 27 per cent - middle-class voters is ready to abandon Labour if the price of drink continues to rise, while three out of four oppose the increases.

Tory culture spokesman Jeremy Hunt said: "Alistair Darling is clearly planning to hit 37million responsible drinkers with across-the- board increases in alcohol tax.

"This isn't about tackling binge drinking - it's about papering over the cracks in the public finances."

Matthew Elliott of the TaxPayers' Alliance, said: "This is really about squeezing more money out of the law-abiding middle classes."

Motorists face being "clobbered from all sides" in the Budget.

Petrol retailers said the Chancellor's 2p a litre duty increase planned for April 1 would add 2.35p to a litre with VAT.

But pump prices are soaring anyway as demand for fuel increases and the cost of oil hits record levels.

The result of all this is that pump prices will rise by 5p a litre by April 1 and by 8p a litre in June.

This will mean a litre will reach £1.14, the equivalent of a once-unthinkable £5.18 per gallon.

The AA, RAC Foundation, Petrol Retailers' Association, and the British Chambers of Commerce have joined forces with hauliers and the National Farmers' Union to call for the duty rise to be scrapped.

Ministers are gambling that with petrol already above the £1 a litre barrier and with hauliers under threat of losing their operators licences if they try to blockade terminals, they face little real opposition.

Ray Holloway of the Petrol Retailers' Association fears the Chancellor may have miscalculated: "He is asking for a reaction. It's tipping people over the edge."

Fuel protest group Transaction said: "There could be a protest of some sort as early as next week. People are very angry."

Mr Darling is also widely expected to introduce a "showroom tax" which could put up to £2,000 extra on to the price of the most uneconomical 4x4s and cars.

The top band G for road tax is due to rise to £400 under measures announced at the last Budget.

The number of tax bands is likely to be increased to give drivers more incentive to buy a "clean" car.

Company car fleets are also due to be hit, forcing more employees into cleaner cars.

• Crude oil prices broke through $107 a barrel to set another record in New York last night.