Hammond is expected to make the announcement in his Budget speech later on Monday.
News host Colin Brazier made a subtle dig at Labour Shadow Secretary Rebecca Long-Bailey while discussing the Budget earlier today.
The Prime Minister praised the Budget, saying: "Austerity coming to an end isn't just about more money into our public services, it's about more money in people's pockets as well".
"When we first said it in the summer we suggested we might have to raise taxes, we would have to raise taxes, to fund part of that".
Mrs May was in the Norwegian capital for the Northern Future Forum summit of north European states and will later address the Nordic Council.
"We've now turned a corner and we are able to give Britain a bit of good news".
Former work and pensions secretary Yvette Cooper, who is now chair of the home affairs select committee, said: "People on £90-100k a year will get tax cut worth £860 in April, those on £125k will get £600 - far more than low-paid workers, at a time when child poverty is going up, benefits are being cut, vital council services are being cut, police are badly overstretched".
The shadow chancellor claimed Labour would make the top 5% "pay that bit more" and added: "We are not going to take funding away from people".
"At a time when the United Kingdom must pull out all the stops to attract inward investment with Brexit looming on the horizon, it beggars belief that a Conservative Chancellor should contemplate levying a brand new tax on companies that have already invested heavily in the United Kingdom, employ thousands of people and whose total tax contribution is very often overlooked", he said.
The two items above have prompted certain quarters in the Labour party to say that the ruling government is preparing for a general election to come next year, and that the moves above are to gather support from the public ahead of it.
Mr McDonnell later defended his decision to back Mr Hammond's income tax cuts.