Recovery will be green, says Brown

In an interview he foreshadowed a series of proposals - including plans to extend the use of electric cars.

However, after Bank of England Governor Mervyn King warned the UK cannot afford another big "stimulus" package to boost the economy, the PM admitted his room for manoeuvre was limited.

"It is not just what we do to give real help to people and business now, but about setting a path for the future as well. We always take into account both what we need to do now and what is best future for the fiscal position," he said.

The Independent, which reported the interview, said the Budget would include an announcement that trials for electric cars will begin next year in two or three cities.

Ministers will open talks with the electricity suppliers to develop a national network of roadside power points where vehicles can recharge their batteries.

Meanwhile councils will be invited to submit bids to become Britain's first "green cities".

The paper said that in other moves, the Government will shortly announce a relaxation of the planning rules to enable the building of more wind farms to ensure the UK meets its target of getting 15% of its energy from renewable sources by 2020.

"This is a major part of our plan for recovery in the Budget. We will set out our proposals for a greener economy," Mr Brown said.

"This is a job creator, a quality of life improver and an environment-enhancing measure. We want to harness a general desire among people to be part of this. A better Britain means building a greener Britain."