CUSTOMERS were bracing themselves today amid fears that water and electricity giant United Utilities could pass on the burden of the budget windfall tax to domestic bills.

The super-utility which includes North West Water and NORWEB, supplying power to millions of homes in the region made no immediate official reaction to the one-off tax on "excess profits" made by the privatised companies.

But speculation was growing today that customers would face an increase in bills to compensate for the millions of pounds being taken by the Treasury.

Increased duty on alcohol got a guarded response from the Bolton-based North West Brewers and Licensed Retailers Association.

Secretary Richard Daglish said: "It is a pity it could not have been frozen rather than increasing with inflation.

"But we do welcome the suggestions that there will be a major review of duty on alcohol and tackling the problems of the huge amounts of cheap alcohol being brought across the channel - some for illegal sale."

The widely expected extra heavy taxation on controversial alcopops did not happen. Leading Bolton anti-alcopops campaigner Cllr Stuart Murray said: "More could have been done on that specific problem, but in the context of the whole budget I am not too disappointed."

Local motoring organisation spokesmen have attacked the increases in fuel prices and car tax.

AA North West policy director John Dawson said: "These increases in fuel tax do nothing to help the environment, they just raise cash for the Treasury." Drivers will pay an estimated £60 extra per year for petrol.

Bolton Age Concern chief officer Gareth Evans said: "We have campaigned long and hard for a reduction in VAT on fuel. We think there should be no VAT on it at all and hope this is the first move in that direction."

He added: "Extra spending for the NHS is also good news."

Budget measures to help the unemployed and low paid were welcomed by the Greater Manchester Low Pay Unit today.

The unit is particularly happy with the plans for a national childcare strategy, plans for young people to be trained to insulate pensioners' homes, extra help for the disabled with training and work programmes and promises to cut the lower rate of income tax to 10p.

Mr David Arkwright, President of Bolton & Bury Chamber of Commerce said: "The reduction in Corporation Tax is obviously to be welcomed, but it is likely off-set by damaged caused by the raid on the pension Fund." He said companies funding pension schemes would need to make major contributions to make up losses.

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