As the Tories begins its annual party conference in Birmingham, Cameron said his party would not impose a new tax on expensive properties, though he did say there would be “further action to ensure rich people pay their fair share”.

Speaking on the BBC’s Andrew Marr Show, Cameron said an annual tax on property “is not going to happen”.

The Liberal Democrats have said they will only sign up to fresh austerity measures if there are extra levies on the rich.

Meanwhile, George Osborne has described demands for a wealth tax as “the politics of resentment”.

Speaking in an interview with the Mail on Sunday, the Chancellor said: “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.”

Osborne criticised Labour leader Ed Miliband for branding the Conservatives “the millionaires’ party” and calling on the government to abandon its austerity package.