The Chancellor Jeremy Hunt is expected to announce £8.6m of funding for Edinburgh’s festivals in tomorrow's Spring Budget.
The Independent reports that some of the funding could go towards a permanent HQ for the Fringe.
Hunt said: “From Edinburgh’s Fringe to the International Festival, the city is world-famous for culture and it’s right to support it and help it grow.
“Millions of people flock to Edinburgh from all over the globe for its festivals, creating opportunities for incredible comedians, musicians, artists and more, as well as thousands of jobs each year – all contributing immensely to the UK’s shared economy.”
UK Culture Secretary Lucy Frazer said the money "will help us safeguard a future where upcoming British talent can capitalise on the opportunities on offer".
Scottish Secretary Alister Jack declared the funding “fantastic news for Scotland".