Theresa May and Philip Hammond have agreed measures to help key working class voters in next week’s Autumn Statement after weeks of tense negotiations.
The Financial Times reports the Prime Minister has been insisting on more measures to help so-called “Jams”, those who are “just about managing”.
The Chancellor meanwhile wanted a package of measures to boost infrastructure and increase spending in a downturn, given the backdrop of Brexit uncertainty.
Hammond is expected to honour the Tory manifesto pledge to raise the income tax threshold to £12,500 and to increase the higher rate tax threshold to £50,000.
Other measures planned include a continued freeze in fuel duty, cuts to air passenger duty and childcare subsidies.
One source told the newspaper: “Philip’s view is the traditional way for a Conservative government to help working people is to run the economy effectively”, and added the negotiations with Number had been “heavy going”.
Downing Street and the Treasury told the FT they would not comment on Autumn Statement “speculation”.