Chancellor George Osborne has flatly ruled out a "mansion tax" on properties over £2 million, in a blow to the Lib Dems.
The Lib Dems have long argued for the levy - saying it is better to tax wealth than earnings - but Mr Osborne warned that it would quickly spread to "more modest" homes.
We are not going to have a mansion tax or a new tax that is a percentage value of people's properties. Before the election they will call it a mansion tax, but people will wake up the day after the election and discover suddenly their more modest home has been labelled a mansion.
We don't think people who have worked hard, saved up to buy a home, should be clobbered with a mansion tax.
Speaking on the first day of the Tory party conference David Cameron rejected plans for a 'mansion tax' and signalled further budget cuts.
As the Conservative Party Conference begins David Cameron has already ruled out the controversial 'mansion tax' plans.
David Cameron today will pledge to use Britain's veto to block the European Union budget if it is not in the UK interest.