Phillip Hammond is expected to provide a windfall of cash for new schools when he unveils the Budget on Wednesday, with an emphasis on the creation of grammar schools.
The Chancellor of the Exchequer plans to announce a £320m cash boost, with the aim of funding 140 new free schools. This is on top of the 500 free schools already promised by 2020.
Parents will be free to set up grammar schools, with Theresa May set to begin the process of overturning the current ban on new selective institutions imminently.
Mrs May has made grammar schools a priority of her administration. She has talked of building a 'Great Meritocracy' and ending the "brutal and unacceptable" reality of selection by income.
Additionally, the Budget will include £216 million to refurbish existing schools, and will build on existing plans to spend more than £10 billion on school buildings.
Mr. Hammond has said: "Investing in education and skills is the single most important thing that we can do to equip our children for the future.
"We are not starting from scratch; we have protected the core schools budget, which stands at over £40billion this year.
"These announcements take the next steps in giving parents greater choice in finding a good school for their child, whatever their background."