Gordon Brown is to freeze tax on petrol for another year in Wednesday's Budget, according to reports in Monday's newspapers.

In his November 2000 pre-Budget report, following protests that threatened to bring Britain to a standstill, the chancellor promised to freeze duty on all fuels until April 2002.

But he added that the freeze would be extended for a further year if the price of oil stayed high and the Sun newspaper forecasts that will happen.

And crude oil prices have soared from $19 (�13.23) to $28 (�19.50) a barrel following turmoil in the Middle East, Iraqi president Saddam Hussein's ban on fuel exports and the short-lived military coup in Venezuela.

Tony Blair has already hinted at tax rises

Another year's freeze would cost the Treasury about �560m.

But a rise in line with inflation would cost motorists an extra 1.5p a litre.

And Tony Blair has already hinted at tax rises in this week's Budget.

Writing in the Observer newspaper, the prime minister said the public realise they cannot have world class services if they are not prepared to pay for them.

There is speculation that Mr Brown will also announce an increase in individual taxation worth up to �7.5bn a year to pay for extra health spending.

It is thought that this will be largely achieved through phased increases in employees' National Insurance contributions.

A 1% rise to 11% of income above �4,615 but below �30,420 would generate �3.7bn but also increase payments by higher earners by �640 a year.

Gordon Brown is likely to ramp up excise duties on alcohol and tobacco

A 1% rise in Value Added Tax to 18.5% would also generate around �3.7bn.

But Mr Brown will also announce a top-up to the minimum wage of between 50p and �1 an hour for childless singles and couples to protect low paid workers from tax rises, according to reports.

The Guardian newspaper says Mr Brown is to spend about �2bn to boost the wages taken home by low-paid workers.

He is also predicted to give more details of his planned Child Trust Fund, under which children from less well-off families are expected to get about �500 invested for them at birth.

But Mr Brown is also likely to ramp up excise duties on alcohol and tobacco - frozen last year in typical pre-election vote-winning style.

A 20p hike on a pack of 20 cigarettes would swell the government's coffers by about �400,000 but could encourage smuggling.

City investors favour higher personal taxation as a means of curbing inflationary increases in consumer spending without putting up interest rates.

Digby Jones says Mr Brown should not "come after just business"

And business lobbies argue that companies have borne the brunt of a �29bn tax increase since Labour came to power.

The Confederation of British Industry, the UK's main employers' lobby, last week called for a �2bn cut in the corporate tax bill in order to help British businesses compete in global markets.

CBI Director General Digby Jones said Mr Brown should not "come after just business" to fund public services.

Any increase in public spending should be accompanied by internal reforms aimed at improving cost efficiency, he added.

The Treasury has already unveiled a handful of business-friendly measures in this year's Budget.

They include tax credits aimed at boosting research and development among larger companies, and tax exemptions on profits generated through the sale of some shareholdings.