The Chancellor of the Exchequer George Osborne will present his second budget today.

Tax breaks for hard-pressed families and incentives for companies are expected to be at the heart of today’s budget announcement.

Experts say that when the next tax year starts in April a total of 45 significant changes will come into force.

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Key reforms include: Higher Rate income tax threshold drops to £42,475 - resulting in 750,000 more people paying tax at 40 percent.

All National Insurance contributions will increase by one percent.

The Consumer Price Index (CPI), rather than the Retail Price Index (RPI) will be used to uprate all benefits, tax credits and public sector pensions.

The Institute for Fiscal Studies already warned that the average household is £480 worse off because of the changes to indirect taxation that took effect in January 2011.

Now families will be £200 worse off after expected changes to tax and welfare benefits.

One piece of good news is that a freeze on fuel duty is widely anticipated.