Drinkers, drivers pay Budget price

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Drinkers and drivers of "gas guzzling" cars have paid the price as Alistair Darling delivered his first Budget as Chancellor.

Mr Darling set out plans to overhaul the vehicle excise duty system and introduce a new "showroom tax" to hit the drivers of the most-polluting vehicles.

At the same time he put up alcohol duties by 6% above inflation from midnight - slapping 4p on a pint of beer and 55p on a bottle of spirits in a new crackdown on "binge-drinking Britain".

There was also a warning that he would legislate next year to impose a charge on disposable plastic bags unless the retailers took action to curb their use.

However, his attempts to establish his "green" credentials were hampered by an announcement that a planned 2p increase in fuel duty due to come in April would be delayed.

Mr Darling said that his "responsible" measures would enable him to take further measures to cut child poverty.

However, he was also forced to slash his forecasts for economic growth and announced a big increase in Government borrowing.

David Cameron dismissed Mr Darling's claims that the UK was well-placed to weather the global financial storm.

The Tory leader said: "As this country enters troubled times it could hardly be worse prepared."

Mr Cameron accused Mr Darling of presiding over the biggest deficit in western Europe and the highest interest rates in the G7.