Speculation is growing about significant increases in tax when the chancellor delivers Wednesday's budget.

Nearly all the planned tax increases will begin in April next year, to coincide with the start of the three-year spending round, it is reported today.

National insurance is the expected target for the increases, to fund an extra £18 billion investment in the NHS over the next three years.

However, some government figures are said to be concerned that the chancellor will be seen to be ignoring other public services, such as education, although the DfES could receive up to £300 million to tackle disruptive pupils.

Concern also exists that the public will perceive the budget as a return to "Old Labour" tax-and-spend policy.

However, writing in today's FT, the former Northern Ireland secretary, Peter Mandelson, claims that conditions today are different from those in 1992 - when Labour's shadow budget was blamed for its election defeat.

Other policies expected include a freeze on petrol duty as the Middle East crisis continues - a move which will increase speculation of future oil price increases.

The Mirror today reports that alcohol duty will be cut by 10 pence.

The minimum wage will rise by 10 pence per hour to £4.30 from October, with the rate for 18 to 21-year-olds increasing to £3.60.

The Low Pay unit criticised the rise which was described as "a few crumbs" that follow a crop of big pay-outs to company executives.