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.
– Nick Clegg, Deputy Prime Minister
The priority should be, at a time when there's a lot of economic uncertainty around and when people are facing higher prices at the petrol pump and in the shops, that we should do as much as possible to help people keep the money that they have earned.
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.