Budget 2012: Tax allowances set to rise further
21 March 2012 Last updated at 06:52 GMT
George Osborne is set to announce a significant further increase in personal tax allowances in Wednesday's Budget, the BBC understands.
The threshold at which anyone pays income tax is set to increase to £9,205, benefiting millions of people.
The chancellor is also expected to announce a cut in the top rate of tax from 50p to 45p, but not for a year.
Carole Walker reports.