Jeremy Hunt will announce a 2p cut to personal taxes in the budget that will save 27 million workers hundreds of pounds this year.
The Chancellor will reduce national insurance contributions for the second time in less than six months in his drive to give people back more of what they earn.
But the move will disappoint older voters hoping for a reduction in income tax after inflation-matching state pension increases that mean they will be hit with levies for the first time.
Mr Hunt cut NICS by 2% in November, saving a worker £35,000 more than £450 a year.
Doubling the reduction means the government will save a two income household nearly £2,000.
The Chancellor believes there is a “moral duty” to cut taxes but insists he will only do it in a “responsible” way.
He is expected to reform the non-dom tax status that allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains.
It could generate an extra £2 billion in tax revenues, although economists warn the move could have unforeseen consequences.
Mr Hunt has been spending the past few weeks looking for cash to fund a significant cut to personal taxes.
He has looked at new levies in other areas after public spending forecasts were less favourable than previously expected.
Vape users and second-home owners who rent out their properties to tourists are among those likely to lose out in the statement.
Mr Hunt continues to face pressure from Conservatives to cut some other taxes, including stamp duty on properties and VAT on purchases by tourists.
Overall departmental spending is currently pencilled in to rise by 1% per year in real terms after 2025, and the Chancellor could reduce this to 0.7%.
Unprotected services such as the courts, police and local authorities would be likely to take the brunt of any reduction.
The King has held an in-person pre-Budget audience with Mr Hunt at Buckingham Palace.
Charles, who is being treated for cancer, continued with his duties as head of state on Tuesday morning.
Before a Budget is presented, the Chancellor of the Exchequer meets with the monarch, usually the day before the Government’s plans for the economy are delivered in a statement to the Commons.
Trade Minister Greg Hands said the UK is seeing “economic better times coming up” and the spring Budget will reflect that.
He told ITV’s Good Morning Britain, trade minister Mr Hands said: “I think we are seeing economic better times coming up and I think the Budget will reflect that.”
When it was put to him that many people would say public services have suffered under the Government, he said: “Well, I disagree. And I think the evidence, actually, is there. We have record numbers of police officers, we pledged in 2019 to recruit an extra 20,000… we have a record number of nurses.
“Obviously there are vacancies, we want to fill those, but look at what we have delivered so far.”
