David Cameron, the Prime Minister of the UK has ruled out the creation of a new council tax bands on £1million homes.

George Osborne and Nick Clegg have discussed the proposal to impose taxes on houses that cost more than £1million. However, Prime Minister's office indicates that the Prime Minister will not support a council tax bands on high value properties or a new tax on mansions. Prime Minister's official spokesman indicated that the Chancellor might introduce higher stamp duty for expensive houses as part of the Autumn Statement next month.

"We don't think that people who've worked hard and saved up to buy a home should be hit with a mansion tax. And we've no plans to introduce new council tax bands either - we've ruled out a re-evaluation in this parliament," the spokesman said.

Boris Johnson, the Mayor of London has described the idea of introducing new council tax bands on expensive homes as absurd. He said that the high level of taxation would make the country less competitive. He asked politicians to be positive in their approach and stop thinking about austerity and spending cuts as it dampens growth and enterprise.