A £2BN cash injection for green projects will be among measures in the budget aimed at stimulating economic growth, Treasury sources indicated today.

Chancellor Alistair Darling, right, is expected to announce on Wednesday that the fund will be paid for from the proceeds of selling off the Channel Tunnel rail link.

Both he and Prime Minister Gordon Brown said at the weekend that state efforts to stimulate private investment would be central to the pre-election package.

But the Chancellor faced fresh pressure to make cuts today amid renewed concerns over the strength of the recovery and figures showing public spending at record levels.

Mr Darling promised a ‘‘sensible, workmanlike’’ budget yesterday as he renewed his message that there would be no pre-election giveaways.

Better-than-expected tax and borrowing figures have given the chancellor more leeway than anticipated - up to £12bn, according to experts.

But he said voters expected him to be realistic about the UK’s precarious economic recovery and prioritise measures to stimulate growth.

Tim Porter, tax partner at PricewaterhouseCoopers in Newcastle, said any “bold new measures” for the economy were likely to come post-election.

He added: “But in this, the chancellor’s last budget before the election, he has the chance to deliver clear messages to address concerns on growth and recovery.”

Mr Porter said a rise in tax on alcohol and cigarettes was likely in Wednesday’s Budget with odds of 1-2.

Odds for other announcements include:

VAT – a rise of 2.5% to 20%, potentially raising more than £10bn for the Treasury to help fill the fiscal gap. 10 - 1

Income tax – raise the 40% rate of income tax by 1p for the life of the next parliament. 25 – 1

Green home ‘scrappage scheme’ - a financial incentive for home goods to encourage purchase of the most energy efficient models. 50 - 1