The BBC reports the threshold for income tax is to rise to £9,205 – which could benefit millions of people, although the Telegraph reports a lower rise to £9,000.

George Osborne – who will give his third Budget speech at 12.30pm today – is also expected to announce a cut in the top rate of tax from 50p to 45p, delayed for one year.

It is thought these measures will be paid for by ending “tax reliefs and loopholes” for the rich and potentially raising property taxes, the report said.

The income tax threshold was increased by £1,000 to £7,475 in April 2011. An additional £630 rise to £8,105 was due net month.

Increasing the income tax threshold to £10,000 is a ‘flagship policy’ of the Liberal Democrats.

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Pension tax-relief for high earners, ISA allowances, Stamp Duty and child benefit are also likely to be covered in the Budget speech.