Mansion Tax scrapped after PM vetoes the idea

The government will not announce a Mansion Tax at next month’s Budget.

It was first reported by the Sunday Telegraph a week ago, quoting two separate sources saying the idea was being considered by both the Treasury and 10 Downing Street.

On the same day Housing Secretary Robert Jenrick appeared on Sky TV and declined to rule out the possibility of a Mansion Tax.

But what a difference a week makes.

This morning’s Sunday Telegraph reports that Boris Johnson personally has vetoed the proposal.

Estate agents and Conservative politicians criticised the idea, and it has now emerged that Sajid Javid – the former Chancellor who resigned on Thursday – had been told by a senior backbench MP prior to the Cabinet reshuffle that many Tories were up in arms at the prospect of such a tax.

It is also revealed in the Telegraph that the Treasury wanted next month’s Budget to include a pledge to undertake a nationwide revaluation of homes.

This may have resulted in sharply higher council tax for many home owners.

However the newspaper understands that this, too, has been scrapped and will not be announced at the Budget.