SMOKERS and drinkers were targeted by Chancellor Gordon Brown in his Budget.

Cigarettes go up by 8p a packet of 20, 4p increase in duty on wine and 1p on beer, but spirit duty was frozen.

Income tax and tax allowances are to remain the same and duty on fuel has been frozen until October.

Pensioners were disappointed with the chancellor. Fred Kaller, chairman of the Evesham and Pershore Pensioners Association, said: "Pensioners have once again been pushed to one side. The pension has not been increased in any substantial way."

Winter fuel allowance was increased by £100 and pension deductions during hospital stays abolished.

The chancellor is trying to woo small businesses by cutting red tape and simplifying tax. From today firms with a turnover of less than £56,000 will no longer have to pay VAT. More companies are to be released from "burdensome audit requirements".

Chairman of the Vale of Evesham Commerce and Tourism Association John Stych said: "As far as businesses are concerned, it is possibly as you were. Dropping VAT on small business is quite good, but how many companies are there with that sort of turnover?"

He added: "It doesn't give a great deal of confidence for the future."

Some of the other main points were:

l Every child to get a child trust fund worth up to £500 for the poorest.

l Lone parents looking for work through jobsearch to get extra £20 a week.

l Stamp duty to be frozen.

l Car tax up by rate of inflation - no change for lorries and motorbikes.

l Fuel duty frozen until October.

l Bingo tax abolished.