Tories snub coalition partners by

Levy on posh houses and increase in EU budget targeted

The Conservative leadership has ruled out Liberal Democrat demands for a so-called mansion tax and pledged to block the European Union’s budget if it does not suit the UK.

Prime Minister David Cameron and Chancellor George Osborne went on the offensive yesterday to rally the Tory faithful at the start of the party’s conference in Birmingham.

The pair have been under pressure, with the economy in recession and rivals Ukip and Labour flying high in the polls, particularly since Labour leader Ed Miliband’s wellreceived conference speech in Manchester last week.

Mr Cameron is also being dwarfed in the popularity stakes by Tory colleague Boris Johnson, with a poll yesterday giving the London mayor a +30% rating and the prime minister -21%.

As the party conference opened, Mr Cameron said he would not stand for “outrageous” attempts to increase the overall EU budget in forthcoming spending negotiations.

Meanwhile, Mr Osborne said he was not prepared to accept a mansion tax on homes valued over £2million, a move that would “clobber” those who had worked hard and saved to buy their house.

“We are not going tohave a mansion tax or a new tax that is a percentage value of people’s properties,” he said. “Before the election, they will call it a mansion tax, but people willwakeup the day after the election and discover suddenly their more modest home has been labelled a mansion.

“We don’t think people

“People will find their modest home is labelled a mansion”

who have worked hard, saved up to buy a home, should be clobbered with a mansion tax.”

As well as threatening to use Britain’s veto to block t h e EU b u d g e t , Mr Cameron reiterated his position that voters should be given a chance to have their say onthe UK’s place inEurope in a referendum or election, though not by an “in or out” vote.

“Europe is changing,” he said. “The single currency is integrating rapidly.

“I think this presents a great opportunity for Britain to get the sort of deal we have always wanted in Europe.

“Let’s be at the heart of a free-trading, open-market Europe, but we don’t want this endless political integration.

“I think the opportunity will open up over time to get a new settlement, and when we get that new settlement – after the general election – we should have newconsent for that settlement.”