The minimum tax threshold is set to rise from £9,440 to £10,000 in April and many predict Osborne will increase it further to ease the pressure low income earners.
The chancellor has also strongly hinted that he will focus on the manufacturing sector in today's statement. Manufacturing has been one of the success stories of the UK economy in 2014, with output increasing by 3.3% more in the first quarter of this year than the same period in 2013. It is believed the Government is keen to ensure the manufacturing recovery doesn't stall.
PwC economist John Hawksworth said the recovery in manufacturing could lead to jobs returning to Britain, having previously been off-shored.
"Policymakers can support this trend towards re-shoring by encouraging the formation of centres of excellence, upgrading infrastructure to provide more efficient transport services, working with employers to boost skills and maintaining an internationally competitive tax regime in the UK," he said.
The Government has made two big pre-budget announcements around employment. The first was to raise the national minimum wage to £6.50 per hour.
The second, announced by David Cameron yesterday, was a subsidy of £2,000 towards childcare for working families, which would come into force if the Government were to win the next general election.
*For full Twitter coverage of the 2014 Budget, tune into @hrmagazine on Twitter, where editor Arvind Hickman will take you through live updates, followed by full reports from Hywel Roberts on this website.
