Chancellor Rachel Reeves is expected to confirm speculation that the windfall tax on the oil and gas industry will end earlier than planned.
There has been talk for some time that the energy profits levy would be terminated before its scheduled end date of 2030, or that the rate would be reduced from its effective level of 78%.
Ms Reeves is now considering ending the levy in March 2029, according to the Financial Times. Industry sources have been expecting an announcement in the Budget on 26 November.
It would, however, only mean a return to the original date as Ms Reeves extended the levy by one year in last year's budget.
It was introduced by former Conservative Chancellor Jeremy Hunt during a period of rising profits and a high oil price and the rate was raised by Ms Reeves.
However, the industry has argued that current pricing levels do not justify the levy and there is a mechanism allowing it to fall away earlier if oil and gas prices drop back to more historically "normal" levels.
Critics add that it is adding to the cost of living and feeding into inflation, affecting households and business costs.
If Ms Reeves does scrap the tax early it may affect the funding of GB Energy which is expected to be financed from the levy.