Plans to make anyone carrying out a loft or garage conversion pay more for environmental upgrades “will not happen”, Downing Street sources say.
Proposals to require homeowners spend 10% of the value of any such work on energy efficiency improvements were unveiled in January.
It would extend rules for large developments to domestic improvements.
But senior Conservatives, including the prime minister, are reportedly opposed to the proposal.
Some critics have called the plans a ‘conservatory tax’, although the government says most conservatories will not be affected.