The chancellor's allies argue his plans for pensioners will mean they do not need to face an administrative burden just to pay a small amount of tax.

More specific details, including how many pensioners this will affect, have yet to be confirmed by the Treasury.

The Budget is due to be printed this evening, with Healey's speech likely to be fine-tuned right up until it is delivered on Wednesday lunchtime.

Treasury sources concede it will not involve the scale of tax and spending announcements seen from Labour and Conservative governments in recent years.

The Tories are calling on the chancellor to cut green taxes, red tape and benefits to bring down energy bills.

Reform is recommending the chancellor adopts 60 policies which they claim will create jobs - including approving the controversial Rosebank oil field - a project Healey is understood to back.

Liberal Democrat Treasury spokeswoman Daisy Cooper has called on the government to agree a new growth and defence partnership with the EU, including…