Boris Johnson has shelved plans to impose a “mansion tax” on owners of expensive homes, following a major backlash among Conservative MPs and grassroots.

The Prime Minister is understood to have "cooled" on the idea of including a new "high value property tax" in next month's budget, having previously discussed the proposals with Sajid Javid, who quit as Chancellor last week.

The Sunday Telegraph can disclose that the Treasury had also wanted to announce a nationwide revaluation of homes, which would have left millions of families with higher council tax bills.

Both policies are now "highly unlikely" to feature in the budget due to be delivered by Rishi Sunak, Mr Javid's successor, a Government source told this newspaper.

Mr Johnson and Mr Javid are both understood to have backed away from the proposal for a “recurring” wealth tax after this newspaper's disclosure of the plan last week sparked fury among senior Tories.

In a sign of the strength of opposition to the proposals, The Sunday Telegraph can reveal that Sir Graham Brady, the chairman of the influential 1922 committee of backbench Conservatives, warned Mr Javid about the "push-back" in the parliamentary party in a face-to-face meeting ahead of Thursday's reshuffle.The plans were first put forward by the Treasury as part of a list of possible "revenue raisers" that could help the Government stick to Mr Javid's fiscal rules - which could now be loosened, in a move likely to lead to claims of the Conservatives breaching their manifesto.

Options under discussion also included expanding the scope of inheritance tax to cover business assets and shares that are currently exempt from the levy. It also emerged that Mr Javid was considering severe cuts to pension tax relief.

Mr Javid quit his post after being told his entire team of advisers would be sacked and replaced with Number 10 appointees in a joint economic unit. He claimed “no self-respecting minister" could have accepted the terms he was offered.