How do i adjust the handbrake on a peugeot 306?

you dont say if you have drum brakes or disc brakes. if you have drum brakes it would be wise to check rear brakes first. to check drum brakes you need 32mm socket and big breaker bar to undo hub nut under the metal cover in centre of drum. then check/replace worn/siezed/ leaking, brakes/cylinders/adusters/lever arms, then adust shoes on wheel aduster. replace drum using new nuts and chisel over tab. then adust cable.
if you have disc brakes it would be wise to check pads/discs/calipers/cables first.
to adust handbrake cable on any system you need to remove rear ashtray, undo two screws at rear of console where ashtray was, lift up gear lever gaiter (it clips in) undo two 10mm nuts under gaiter. if you can pull off handbrake trim (very tight) makes adusting cable easier. if not flip out trim below lever and lift up console from rear and you will see cable adustment 13mm nut. tighten up nut to tighten handbrake cable.

me
April 2009