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.