Angus Thompson
Live reporter

Tomorrow is the big day.

Rachel Reeves will put her plans for taxing, spending and borrowing to the nation - and the markets - and then await the reaction.

But although the bulk of the measures will come tomorrow, we did get a few changes announced today:

Minimum wage: will rise in line with recommendations from the government's independent adviser - giving a pay boost to millions. From April, workers over 21 will see a 4.1% increase to their minimum wage, bringing it up to £12.71 an hour.

Sugar tax: will be expanded to take in milk-based drinks, and the minimum sugar threshold at which it applies will be reduced, meaning more sugary drinks will be hit by the tax.

And as ever, there are plenty of taxes rumoured to be in the firing line for an increase - we've had a look at some of these here.

We're ending our live coverage now, but we'll be across all the detail tomorrow, bringing you updates and analysis throughout. Until then, you can read more here:

• Chris Mason: Rachel Reeves will be hoping this Budget buys her some time
• Over 21s to get £12.71 an hour as minimum wage increased

• How much are minimum wages set to rise?
• Milkshakes and lattes to face sugar tax in UK

Chris Mason
Political editor

Image source, Downing Street

Chancellor Rachel Reeves will make an argument about what she will call “the fair and necessary choices” she is taking.

The word “necessary” - when used by a chancellor - means difficult.

Difficult for her and possibly difficult for you.

Every year there is the faintly absurd recipe of a dollop of briefing, several tablespoons of speculation and a sprinkling of leaks before a Budget.

But this year it has been off the scale. Here’s why: it is symptomatic of the vulnerability both Keir Starmer and Reeves feel.

They are the deeply unpopular figureheads of a deeply unpopular government. The thrust of the chancellor’s address will be three cuts – cutting the cost of living, cutting NHS waiting lists and cutting government debt.

Making that happen will involve some taxes going in the other direction – and the snag is putting up taxes increases the cost of living for those with higher tax bills.

Reeves will argue there will be plenty in there that will help address the cost of living for some.

The relationship between the government and its backbenchers right now is at best tetchy, at its worst volcanic.

Starmer and Reeves know tomorrow will be a big determinant in whether they’re both carrying their current job titles by the time of the next Budget in a year’s time.

• You can read more here from Chris Mason

Jared Evitts
BBC Newsbeat

Image source, Joel

We’ve just been speaking to Joel, a 19-year-old bartender in Sunderland, to get his reaction to the minimum wage increase announced for April.

“Who doesn’t always want more money?” he says. “Especially the way things are going everything’s so expensive now, you take everything you can get.”

He says it’ll give him a better quality of life, and more opportunity to do things.

“At the end of the day a lot of things do revolve around money. If you’ve got more of it, you’re going to have a better time.

“I also think you’re going to have a better time at work, because in my opinion I think the minimum wage being £10 an hour is very low for the current cost of living that we have.”

But he also sees both sides of the increase too.

“Businesses on the other hand might not be as happy because they could potentially be losing money. So I think it’s quite a two-sided argument but for me, I’d say it’s good.”

Image source, Ben Birchall/PA Wire

We're now hearing from the Liberal Democrats, who say increasing the minimum wage "is always welcome news" for low-paid workers - but also could have negative impacts.

Daisy Cooper, the party's treasury spokesperson, warns that "unless businesses are able to grow, there is a danger that this will result in fewer jobs being available overall".

"The government must make people’s money go further by slashing energy bills, boosting our high streets with a cut to VAT for hospitality until 2027, and going for growth with a better deal with Europe,” she adds.

As we've been reporting, the changes to the minimum wage were based on the recommendations of the Low Pay Commission - an independent body created to advise the government on changes to the Minimum and Living wage.

Chair Baroness Philippa Stroud says the Low Pay Commission's recommendations are "a product of diligent study of the evidence, careful reflection and significant negotiation".

“Our advice balances the government’s ambitions with the need to protect the economy and labour market, with rates that are fair and realistic,” she adds.

The director of the Living Wage Foundation, Katherine Chapman, has welcomed the government's increases to minimum wage rates but says they "fall short" of the 'real living wage'.

This is a voluntary wage rate based on the cost of living, and is calculated by the Resolution Foundation - an independent think tank that focuses on people earning lower incomes.

Chapman's Living Wage Foundation tries to encourage employers to choose to pay the real living wage, through an accreditation scheme.

It currently stands at £13.45 an hour in the UK and £14.80 in London.

However, Chapman does say that the increase in minimum wage rates is a "really positive move that will ease some of the pressure on low paid workers hit by sharp price rises over the last year".

We're getting some reaction now to the changes announced to minimum wage rates.

Paul Nowak, who is the general secretary of the Trades Union Congress (TUC) says that "the government is delivering on its promise to make work pay".

“Putting more money in people’s pockets is good for workers and good for the economy as it goes straight back into our high streets and local businesses," he adds.

Katie Nicholls, chair of UKHospitality - a trade body representing over 700 companies and 123,000 venues in the hospitality sector - raises concerns about the impact on employers: “Increases to minimum wage rates are yet another cost for hospitality businesses to balance, at a time when they are already being taxed out."

“These additional costs make action at the Budget to reduce hospitality’s tax burden even more important," she says.

The National Living Wage is the minimum amount a worker is entitled to be paid if they are 21 or over.

It is currently set at £12.21 an hour and is set to rise by 4.1% to £12.71 an hour from next April under the changes announced by the government.

The National Minimum Wage is the wage floor for workers aged between school-leaving age (turning 16) and 20.

For those aged 18 to 20 the hourly rate is £10. This will rise by 8.5% to £10.85 an hour.

And for those under 18 it's £7.55, and will rise by 6% to £8 an hour.

If you're an apprentice and are under 19 or in the first year of your apprenticeship, you receive a rate of at least £7.55 an hour. As above, it will increase by 6% to £8 an hour.

Reeves says her changes were based on the recommendations of the Low Pay Commission, which is an independent body created to advise the government on changes to the Minimum and Living wage.

In August the commission projected increasing the Living Wage to £12.71 an hour would ensure it didn't fall below two-thirds of median earnings.

More money for workers but companies face increased costspublished at 18:04 GMT

18:04 GMT

Simon Jack
Business editor

The chancellor will celebrate another higher-than-inflation rise in the National Living Wage as an important move in easing cost of living pressures.

Workers over 21 will see a rise of 4.1% to £12.77 while workers between 18 and 20 will get an 8.5% rise to £10.85 from April next year.

That's on top of 6.7% and 16.3% respectively last year - when there was also a rise in employers' National Insurance.

This all adds to company costs and they can react in a number of ways; reduce hiring, give lower pay rises to other workers or raise prices to their customers.

There is plenty of evidence that employers have done some or all of these in the last year.

Higher wages give workers more money to spend but can also act as a brake on the chancellor's holy grail of economic growth.

We can now bring you some more detail on the government's announcement that minimum wage rates are to increase next year.

Chancellor Rachel Reeves says she has accepted the recommendations from the Low Pay Commission - this is an independent body that advises the government on minimum wage rates.

"I know the cost of living is still the number one issue for working people and that the economy isn't working well enough for those on the lowest income," says Reeves.

Reeves says she is introducing the changes "so that those on low incomes are properly rewarded for their hard work".

"These changes are going to benefit many young people across our country, getting their first job," she says.

Image source, PA Media

The government has just announced that minimum wage rates will increase next year.

From April, workers over 21 will see a 4.1% increase to their minimum wage, bringing it up to £12.71 an hour.

Workers between 18 and 20 will see an 8.5% rise to £10.85 an hour.

For 16 to 17-year-olds - and those on apprenticeships - there will be a 6% increase, bringing the minimum wage up to £8 an hour.

We'll bring you more on this announcement shortly - stay with us.

Among other plans the government is expected to unveil tomorrow is a levy on overnight visitors to English cities and regions.

Under the proposals, mayors could be given the power to impose a "modest" levy on visitors who stay overnight in hotels, bed and breakfasts, guest houses and holiday lets.

Regional leaders, including London Mayor Sadiq Khan and the Mayor of Greater Manchester Andy Burnham have previously called for this measure to be introduced.

Other prominent tourist destinations around the world - including New York, Paris and Milan - already charge a similar tourist tax.

Nick Triggle
Health correspondent

In a pre-budget announcement, Chancellor Rachel Reeves has said private money will be used to help build a network of local health clinics in England.

The move is controversial as some Labour MPs had objected to the idea, which has echoes of the PFI initiative used by the Blair government to build new hospitals in the early 2000s. That locked the NHS into long and sometimes expensive contracts.

Treasury sources say they have learnt the lessons of those PFI schemes and these deals will provide value for money for the taxpayer.

By 2035 every local area will have one of these one-stop shops that will bring together GPs, nurses, pharmacists, diagnostic tests and hospital specialists under one roof.

Around 250 will be needed with some existing health clinics repurposed using public money.

But where brand new centres are needed contracts could be signed with the private sector to build, run and manage them, the Treasury says.

What will the Budget mean for Scotland?published at 17:25 GMT

17:25 GMT

Glenn Campbell
BBC Scotland Political Editor

Image source, Getty Images

Tomorrow's Budget is the first of two that will define the financial context for the 2026 Holyrood election campaign in Scotland.

Many of the decisions on taxation and spending taken by Chancellor Rachel Reeves will apply across the UK.

The Treasury's approach also determines, to a large extent, the resources available to the Scottish government as it prepares its draft budget for 2026/27.

Scottish Finance Secretary Shona Robison is expected to publish her plans on Tuesday 13 January.

Click here to find out more about the potential impact of the Budget in Scotland.

Kevin Peachey
Cost of living correspondent

More people on low incomes will be encouraged to save through a scheme that offers a large government bonus, the Treasury has announced.

About three million people on universal credit are currently eligible for the scheme, which sees the government add 50p for every pound saved after two and four years.

An extra 1.5 million parents and carers will become eligible from 2028 and the scheme, which was due to end in 2027, will be made permanent.

While Health Secretary Wes Streeting has been out and about announcing the government's plans to extend the sugar tax, the prime minister and chancellor have been preparing for tomorrow's much-anticipated Budget.

At around 12:30 tomorrow, once Keir Starmer has finished up with PMQs, Rachel Reeves will take the limelight at the dispatch box, and reveal what's inside the famous red box.

We'll bring you all the events and analysis when it happens, but until then we can share these pictures from inside the heart of government - including a first sighting of the fabled red Budget box and its Budget document.

Image source, HM Treasury

Image source, HM Treasury

Image source, HM Treasury

Image source, Downing Street

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Image source, Getty Images

As we look ahead to tomorrow's Budget, we've been hearing more about the efforts of Chancellor Rachel Reeves to unite Labour MPs behind her plans.

Speaking to a meeting of Labour's Parliamentary Party on Monday evening, Reeves said she thought Labour MPs would like 90-95% of her spending plan.

However, she warned they would have to accept the tougher measures as well saying: "It's a package, not a pick-and-mix. You can't say you like the cola bottles but you don't like the fruit salad."

She said her three priorities would be: "Cutting the cost of living, cutting NHS waiting lists and cutting the cost of debt."

Following the meeting, one Labour MP said the chancellor had been "strong and honest" but another said she had sounded "desperate".

Marianna Penman, 45, owns Marianna's Catering in East Kilbride and she says the biggest pressure on her business is the cost of food.

“That’s rocketed up by 50%… I can’t put my prices 50% up,” she says.

Marianna also highlights staff costs hit by the National Insurance Employer contribution and the hike in the minimum wage.

She wants the chancellor to not put up taxes or VAT in this Budget and says the government is definitely not listening to entrepreneurs and business people.

The caterer adds: "I think there should be financial support for small businesses to grow.”

Tinshui Yeung
Live reporter

We’ve been keeping you updated on those sugar tax changes all day and Wes Streeting is due to speak at a conference at the health think-tank The Kings Fund shortly (you can watch a stream of his speech at the top of the page).

But with the Budget landing tomorrow, this is just the tip of the sugar cube.

Here are some of the major changes we’re expecting:

Pension: It’s suggested Rachel Reeves could put a £2,000 cap on the amount workers can put into their pensions under "salary sacrifice" schemes without paying National Insurance.

Property taxes: Reeves is reportedly planning to introduce a new tax on high-value homes in England. The tax is expected to apply to properties worth more than £2m.

Electric vehicles tax: Electric vehicle drivers could be charged 3p a mile, on top of other road taxes.

Isa reform: The chancellor is reportedly planning to cut the amount of money that can be saved tax-free in cash Individual Savings Accounts (Isas).

Business taxes: At the moment, overseas retailers can send packages worth less than £135 to the UK without paying import duties, giving them an unfair advantage over UK firms, but this would end.

For the rest of the day, alongside more reaction to the sugar tax, we’ll be bringing you what we know so far ahead of tomorrow’s big reveal.

So grab a cuppa - or a milkshake - and stay with us.