DRIVERS of gas-guzzling cars and drinkers were punished yesterday to rescue Labour's pledges to tackle poverty - in a Budget that predicted stormy economic times ahead.

In his first Budget, Chancellor Alistair Darling slapped some of the biggest tax rises in history on alcohol - 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits.

Other "sin taxes" will see the price of a packet of 20 cigarettes rise by 11p and a £950 "showroom tax" imposed, from April 2010, on the worst-polluting cars - such as 4x4s and most Jaguars - in the first year of ownership.

From next year, vehicle excise duty on such "Band M" cars will soar to £440, while energy-friendly cars, such as the Toyota Prius and Mini, will cost no more than £120.

Of the revenue raised, £1.7bn will be spent on lifting a further 250,000 children out of poverty by 2010, by raising child tax credits and increasing child benefit to £20 a week - but not until next year.

To raise morale on the Labour benches, Mr Darling increased winter fuel allowances for pensioners struggling to pay their fuel bills from £200 to £250 (for the over-60s) and from £300 to £400 (for the over-80s).

Five million people on pre-payment meters for gas and electricity were promised a "fairer deal", but will still pay up to £85 more per bill than those with direct debit arrangements.

The Chancellor held firm on the promised £30,000 levy on "non-doms" - wealthy non-domiciled foreigners living in Britain but registered abroad for tax purposes - and on controversial changes to capital gains tax, creating a single 18 per cent rate.

Mr Darling said the tax rises on alcohol from midnight on Sunday - with above-inflation rises for a further four years - were justified because drink had become steadily cheaper, in real terms.

But, by delaying the tax rises on motoring until next year - to stave off an economic downturn in the meantime - Mr Darling may make it harder for Prime Minister Gordon Brown to call a "feelgood" General Election in 2009.

But the Treasury will be borrowing billions more than expected to plug the revenue gap that will open up - £43bn next year, the highest amount since Labour came to power.

During a 50-minute speech, Mr Darling stressed "stability" five times in his first five sentences, saying: "The core purpose of this Budget is stability now and in the future, fairness and opportunity founded on stability and strength."

But Conservative leader David Cameron said: "People watching this Budget will conclude that the Chancellor, and the Prime Minister, live in an entirely different world from everyone else.

"We need a Government that helps people when things are tough. Instead, we have a Government that kicks them when they are down."

And Nick Clegg, the Liberal Democrat leader, attacked a "meagre tinkering Budget, which gives precious little help to the poor but maintains special treatment to the rich".

Other measures saw the deadline for 600 failing schools to improve GCSE results or face possible closure brought forward by 12 months, to 2011, with a £200m pot to help.

And sites have been identified to build 70,000 homes by 2020, on top of 40,000 already planned. Mr Darling announced a study into more long-term fixed-rate mortgages, for up to 25 years.

The Child Poverty Action Group hailed the package as "excellent news", saying: "It keeps the 2010 target to halve child poverty in reach."

But environmental groups reacted angrily to a Budget that fell "a long way short" of the green package promised, attacking the decision to delay a 2p petrol duty rise until October - at a cost of £550m