Gordon Brown will bid farewell to the Treasury on Wednesday with what senior officials have described as a “big budget” that will not only see education placed at the centre of his political programme but which one insider said would also herald changes to the corporate and personal tax systems.

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Chris Giles on what to expect in the Budget

With public finances tight, the changes will be introduced in a revenue neutral package over many years. Any reductions in tax rates will be offset by tax increases or spending cuts elsewhere. Many at Westminster on Tuesday night predicted changes to corporation tax after the chancellor told the FT last week that this would be a “budget for business” and following a series of warnings that companies might relocate to lower-tax jurisdictions.