Earlier this month, The Telegraph revealed that some people working on the original loan plan had complained that it was very complex and difficult to implement.
A political challenge will come when it comes to selling an extraordinary tax on the oil and gas giants to cabinet ministers, many of whom have publicly criticized the idea, and to Conservative MPs.
Johnson had held roundtables with top economists this week to make sure the tax would not deter investment and the threat of inflation.
It is understood that he has decided that “the pain is worth winning” of the move, despite the initial reluctance to sign a tax increase on some companies.
The tax is expected to be tied to the amount invested by oil and gas companies. “The more you invest, the less you contribute,” said a source familiar with the proposal.
The reaction of the Conservatives, already frustrated by a tax burden at its highest point in 70 years, and of companies like BP and Shell, will be followed closely on Thursday.
Smaller moves that had been proposed, such as an extension of the discount scheme for warm housing, are expected to be rejected in favor of lowering energy bills.
It is also likely that there will be a measure specifically targeted at households hardest hit by the cost of living, such as pensioners and people on benefits.
Treasury and Downing Street spokesmen declined to comment Wednesday night.