Budget Day: 6 things to expect in Osborne’s pre-election plan

In what is being dubbed his most political budget, Osborne will try and use his polices to win Conservative votes.

The big crowd-pleasing announcement will be the government’s reining in of aggressive austerity measures, which - for now at least – won’t take public spending back to 1930s levels.

In the main, however, the chancellor’s plans are targeted at traditional Tory voters: the wealthy and older Britons.

Tax cuts

Osborne is expected to raise the level of tax free earnings even further. He is already implementing a rise from £10,000 to £10,600 in April.

During Wednesday’s announcement, however, he could raise it even higher to £11,000 or £11,500. But with a cost of £2.5 billion for every £500 increase, this would not be cheap.

He is also expected to relieve taxes for higher earners, and there is speculation he will raise the 40 percent tax level to those earning £50,000 or more.

A document leaked by the Guardian on Tuesday also showed plans to slash inheritance tax on property, with parents able to leave a property up to the value of £1 million to their children tax free.

Tidal power

The government is set to announce a greater investment in renewable energy, and reveal it is entering negotiations to fund a £1 billion tidal power project in Swansea, south Wales.

While it might present an opportunity for the Conservatives to attract the support of environmentally-conscious voters, the project will require subsidies three times more costly than current energy systems.

Oil & gas

The UK’s oil and gas industry has suffered following the recent oil price crash, as well as being taxed harder, with a rate of 60 to 80 percent. The high taxes were introduced when the price of oil was over $110 a barrel, compared to the current price of $53.

Osborne is expected to announce a tax break to accompany his ‘investment allowance’, which has already been revealed. The allowance lets oil firms invest at a reduced rate.

Beer

The chancellor is set to announce a penny or two off the price of a pint. Although this isn’t an earth-shattering amount, it provides a guaranteed sweetener for potential voters. Whisky and cider could also see tax cuts after last year’s duty freezes.

Housing

The housing crisis has become a sore point for the coalition government, with mass-protest targeting the lack of affordable housing, particularly in the capital.

The chancellor will want to show he is tackling the issue and could announce new measures such as incentives for local authorities to release brownfield sites and speed up the planning process.

Osborne is also likely to announce further help for first-time buyers and mortgage availability.

Bitcoin

The IB Times revealed on Wednesday the government is also expected to announce a consultation on bitcoin and other digital currencies.

The announcement follows meetings with members of the cryptocurrency community, including the UK's Digital Currency Association (UKDCA), in order to discuss the potential of digital currencies and their future in the economy.