Stephanie Flanders
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Budget 2012: BBC's Stephanie Flanders looks ahead

George Osborne is set to announce a significant further increase in personal tax allowances in Wednesday's Budget, the BBC understands.

The threshold below which anyone pays income tax is set to increase to £9,205, benefiting millions of people.

The chancellor is also expected to announce a cut in the top rate of tax from 50p to 45p, but not for a year.

The BBC's economics editor Stephanie Flanders looks ahead to the Budget, which she says will mark a first since the economic crisis of 2008.

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