A senior Government source told the Mail that the proposals are ‘dead in the water’.
This latest abrupt U-turn comes only a week after we revealed the move which would force homeowners to fork out hundreds of pounds extra on measures to improve energy efficiency when they build an extension or fit a boiler.
Although the Liberal Democrat-inspired plans are still out for consultation, the source said: ‘We are absolutely not going to have a conservatory tax. It is an attack on aspiration and we want nothing to do with it. It will be blocked.’
The rethink came as ministers struggled to regain control of the political agenda after an Easter break dominated by Budget rows over tax raids on charities, churches and the elderly.
On another tumultuous day for the Coalition, key developments included:
■ Ministers signalling a climbdown over a planned cap on tax relief for charitable donations, as a survey showed two-thirds of Coalition MPs are against it.
■ Tory Party treasurer Lord Fink joining the criticism of the charity cap, warning it would slash donations to good causes.
■ The deans of 23 cathedrals warning that George Osborne’s plan to slap VAT on listed building alterations ‘seriously jeopardises the sustainability of our great buildings’.
■ Nick Clegg admitting the Government was in ‘a rut where every potentially good story turns into a bad one’.
■ Senior Tory David Davis warning the Government had made a series of ‘straightforward unforced errors’ in recent weeks.
■ Labour announcing it is to force a Commons vote this week on the so-called ‘granny tax’. The £3.5billion raid will hit 4.4million pensioners, with some losing up to £323 a year.
■ David Cameron defending himself against charges of grandstanding on the world stage after spending all of last week out of the country on a tour of the Far East.
The Mail’s revelation last week that ministers planned to force millions of homeowners to install costly energy efficiency measures when making home improvements infuriated Tory MPs.
Under the ‘mandatory’ scheme anyone wanting to build a conservatory, replace a broken boiler or install new windows would have to seek permission from the council. It could then require them to improve the energy efficiency of their homes by investing in measures such as loft and wall insulation and draught-proofing.