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Call to Darling over child poverty
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Pressure is growing on Chancellor Alistair Darling to use his debut Budget to help rescue the Government's faltering battle against child poverty.
A Cabinet row is said to be raging over whether billions more should be spent trying to hit the target of halving the number of young people in poverty by 2010.
Schools Secretary Ed Balls and Pensions Secretary James Purnell are believed to be among the big-hitters backing a major cash injection, while some 70 Labour MPs - including former ministers Hilary Armstrong and David Blunkett - have signed an open letter demanding further action.
However, with already-tight government spending commitments under strain from an international slowdown, Mr Darling faces tough choices on priorities.
The Chancellor is expected to hike tax on wines and spirits in his debut package on Wednesday, with the parties engaged in a "bidding war" to tackle binge-drinking.
Both the Conservatives and Lib Dems have already pledged to raise levies on super-strength lagers and alcopops, with the former saying they will reduce tax on lower-strength booze. Meanwhile, the Lib Dems want to slash VAT on fruit juices from 17.5% to 5% - a move likely to be rejected by Mr Darling.
There are reports that the Chancellor will target drivers of "gas-guzzling" cars and 4x4s. Manufacturers could be forced to include environmental "health warnings" with every car they sell, and a rumoured "showroom tax" could boost the cost of the most expensive vehicles by £2,000. Tax discs could also be colour coded to reflect carbon emissions.
Mr Darling is thought to be planning to hit gas and electricity suppliers - who have come under fire recently for raising charges while recording huge profits.
The industry could be subject to a "windfall tax" of around £1 billion over the next four years, which would pay for £50 increases in winter fuel payments for pensioners, according to another newspaper.
But there is speculation that a proposed crackdown on so-called Non-doms who live in Britain for more than seven years may be watered down further.
