At 12.30pm, Mr Osborne is expected to give his speech to MPs in the House of Commons.

Potential topics have been a cut on the 50p from tax rate to 45p, aggressive measures for those avoiding stamp duty, support for lending to small and medium sized businesses and personal statements for taxpayers detailing how their tax is spent.

Commentators from business and financial organisations have been keen to give their predictions for what will be announced.

John Broome Saunders, actuarial director at Broadstone Pensions and Investments, said: “The really clever thing that Osborne could do would be to tax the whole lump sum and, at the same time, increase the current 25 per cent tax-free allowance.

“Pension scheme members would take home a similar, or possibly higher, lump sum and therefore wouldn’t feel too upset. Moreover, the Government would get an immediate boost to tax revenues.”

Azad Zangana, European economist at Schroders, said: “Income tax threshold is clearly on the agenda but in order to fund a cut in the top rate of tax, the Chancellor will have to find a way to recoup the losses to the exchequer (likely to be small) with other measures.

“Rumours are rife that the Chancellor may reduce pension tax relief for higher earners. The focus will remain on boosting growth and employment, but not at the risk of losing the UK’s credibility with investors.”

Martin Palmer, head of corporate benefits marketing at Friends Life, said: “A number of changes to pension tax relief have been mooted, and we seriously hope that’s all they are - discussion points. At a time when we need to encourage a savings culture at all levels of society, making changes to the tax relief on pension in any form could have serious implications.”

• Financial Planner Online will be extensively covering the Budget this week with coverage of the announcements on the day and all the post-Budget reaction. It will be also be tweeting on the day via our feed @FPM_Online.