The under-fire Chancellor is reportedly poised to cut pension tax relief while slashing rates for younger people.
Mr Hammond is keen to ease back on austerity and unleash a number of “radical” policies to fight off Jeremy Corbyn and boost the Tories following their election debacle.
He will also make it easier for council to borrow money for new social housing and write-off student loans in a bid to lure younger voters, the Sunday Times reported.
He could also allow building on the green belt and is thinking of dropping opposition to borrowing to boost investment.
A cabinet source told the paper: “Downing Street is focused on the intergenerational fairness issue.
“There are quite headline-catching things that can be done on that front.
“Someone floated an idea about having different tax rates for younger people.
“We’re going to have to go in at that level and do even better if we’re going to have a radical budget.”
Another source said: “Now the view has galvanised that this budget has got to be big, it’s got to be powerful, it’s got to be revolutionary.
“Saying it’s got be brave is really understating it. People are very clear that this is basically the last chance.”
Mr Hammond is under intense pressure after angering Tory Brexiteers by refusing to prepare for the possible failure of a “no deal” with Brussels.
Some MPs are calling for Theresa May to sack Mr Hammond as relations between the pair grow increasingly strained over Brexit.
Former chancellor Lord Lawson led the calls for him to be replaced, describing his actions as “very close to sabotage”.
Concerns Mr Hammond is “trying to frustrate the negotiating process” have also been raised by the DUP, which props up the minority Tory government.
A DUP source told The Sunday Telegraph: “It is evident to us that he is winding people up and causing unnecessary division within the Conservative Party at a crucial time in the Brexit negotiations, and his behaviour is very unsettling.
“One has to wonder what his motivation is. He appears to be at least highly sceptical about Brexit and one could conclude from his current position and his behaviour that he is trying to frustrate the negotiating process and to undermine the Prime Minister.
“The DUP will continue to keep a close watch on the situation but we think that Mrs May needs to do something to rein her Chancellor in and to make it clear to him that this kind of behaviour has to stop.”
Earlier this week, the red-faced Chancellor was forced into an embarrassing apology after calling the European Union “the enemy”.
He said in Washington on Friday that the Tories were united in their approach to Brexit and should be focusing on tackling the real “enemy” rather than fighting among themselves.
Writing on Twitter afterwards, he said: “In an interview today I was making the point that we are united at home. I regret I used a poor choice of words.
“We will work with our friends and partners in the EU on a mutually beneficial Brexit deal #noenemieshere.”