Rise in tax allowance will help basic rate taxpayers

Gladstone's old Budget box Credit: REUTERS/Stefan Wermuth

ITV News has learned that the Government plans to raise the personal tax allowance - the part of your income that is not taxed - to £9,205.

That is £1,100 above the expected rise to £8,105 and will leave basic rate taxpayers with an extra £346 in their pocket each year.

Liberal Democrat Leader Nick Clegg had previously called for the allowance to be raised to £10,000, however, he will be pleased with the rise.

Meanwhile, Labour has focussed on the possibility of a cut to the 50p tax rate, which would leave taxpayers in the highest bracket better off.

If this budget sounds like good news so far, that is to be expected. The positive bit always comes out first - on Wednesday we will learn how the Government expects to pay for it.