Chancellor Rachel Reeves is unveiling the long-anticipated budget.
However, a report from the Office for Budget Responsibility (OBR) was published earlier than expected, which analyses policies decided on by the chancellor.
Here are the key points we know so far:
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Tax thresholds will be frozen for an additional three years
The point at which people start paying higher rates of tax will be held. It can mean earners will be dragged into higher tax bands when they get a pay rise.
This will raise £8bn.
Taxes hiked on gambling
The gambling industry is going to be taxed more, to raise more than £1bn.
New mileage-tax on electric cars
Electric car drivers will be subject to a 3p charge for every mile they drive.
This is expected to raise £1.4bn, according to the OBR report.
Change to capital gains tax for employee ownership trusts
This is a tax relief on companies owned by employees.
This is expected to raise £900m.
‘Salary-sacrifice’ pension contributions above £2,000 to face National Insurance
From April 2029, National Insurance will be charged on salary-sacrificed pension contributions above an annual £2,000 threshold.
This will raise £4.7bn.
Two-child benefit cap to be scrapped from April
According to the OBR’s analysis of the chancellor’s budget this will cost the government £2.3bn.
This currently limits the amount of benefits parents can claim for their third child or subsequent children who were born after 6 April 2017. By scrapping the cap, the government hopes it will have a direct impact on reducing child poverty.
This will apply from April 2026.
Tax-free cash ISA limit cut
Savers will only be able to put up to £12,000 into cash ISAs tax-free each year. This is reduced from £20,000 in the hopes that Britons will instead put their money into stocks and shares ISAs.
Over 65s can retain the full £20,000 allowance.
Fuel duty to be frozen until next September
The duty, or tax, paid on diesel and petrol has been frozen at 52.95p per litre.
This will cost the government £2.4bn next year and £0.9bn each year after.
Mansion tax introduced on properties worth more than £2m
It means the most expensive properties in the country, worth more than £2m, will have to pay extra. This will be £2,500 for properties worth £2m to £2.5m and up to £7,500 for homes valued at £5m.
This will raise £0.4bn, the OBR has confirmed.
• The economy is expected to grow 1.5% this year, according to independent forecasters. It’s an increase in growth expectations, for this year.
• Prices are expected to rise faster than the OBR thought in March due to higher wages and food costs. Inflation will be 3.5% this year and 2.5% next.
