Chancellor George Osborne has ruled out a new tax on expensive properties as a way of boosting government revenues.
His decision comes as Conservative activists gather in Birmingham for the party's conference.
Mr Osborne's decision could put him on a collision course with his Lib Dem coalition partners who support such a measure.
Prime Minister David Cameron said the conference was "a real opportunity" to "explain" the party's decisions.
Another measure set to be announced at the conference is the freezing of council tax in England.
And there is to be a cap on how much regulated train fares can go up by - so ticket prices will not rise by more than 1% above the rate of retail-price inflation (RPI).
Analysis
The political weather for the Conservatives in recent months has been overcast at best. Gloomy opinion polls, an upbeat Labour Party after Ed Miliband's speech last week, and above all else, a struggling economy.
The focus at the start of the conference will be on ideas designed to be popular and eye-catching. Council tax in England will be frozen again next year. Rail fares for many commuters will be capped at no more than one percent above inflation. The prime minister has also promised to veto the European Union's long term budget, if he deems it excessive.
In an interview with the Sunday Telegraph, David Cameron directly tackles Ed Miliband's claim to be the new custodian of the political centre ground. It is territory the Conservatives will not desert, he insists. But Mr Cameron does acknowledge he has not done enough to explain what the government is trying to achieve.
In an interview with the Mail On Sunday, the chancellor explained his decision not to create a tax for expensive properties.
He told the newspaper: "Before the election they will call it a mansion tax, but people will wake up the day after the election and discover suddenly their more modest home has been labelled a mansion.
"We don't think people who have worked hard, saved up to buy a home, should be clobbered with a mansion tax."
Liberal Democrat Leader Nick Clegg made it clear at his party's conference that he would only sign up to further cuts in the welfare budget if a wealth tax was imposed by the chancellor at the same time.
The coalition has to agree how to cut - or raise - £16bn towards the end of this parliament.
Meanwhile, Mr Cameron has acknowledged that he needs to do more to explain to voters what the party was doing in government.
"You spend a lot of time governing and deciding and you don't spend enough time explaining. I think conference week is a real opportunity to get out there and explain," he told the Sunday Telegraph.
Mr Cameron made clear that he was not ready to concede the political centre ground to Mr Miliband after the Labour leader's party conference speech claiming his was the true "One Nation" party.
"Are the Conservatives deserting the common ground of British politics? Absolutely not," said the prime minister.
Mr Cameron also said that he would not stand for "outrageous" attempts to increase the overall EU budget in negotiations on spending for the period 2014 to 2020.
"Start Quote
End Quote Grant Shapps Conservative chairmanWe need to move forward and see the economy rebalanced"
"If it comes to saying 'no' to a deal that isn't right for Britain, I'll say 'no'," he said.
'Help many councils'The party's pledge to extend its policy on council tax has been welcomed by local government leaders.
Grants from central government have been offered in 2011 and 2012 to local authorities promising to pass on a council tax freeze - although they cannot be forced to take the cash.
Responding to the news the policy will continue in 2013, Sir Merrick Cockell, chairman of the Local Government Association, said times were tough, which was why "councils up and down the country are keen to help hard-working families and pensioners by keeping council tax down".
"The vast majority of councils have introduced a council tax freeze for the last two years and this announcement will help many councils to carry on freezing council tax for the forthcoming year," he said.
In addition to his stance on a so-called mansion tax, Mr Osborne is also understood to have ruled out introducing new council tax bands on high-value homes.
Conservative Chairman Grant Shapps said his party had "a rigorous plan to get Britain back on track", which he argued was "starting to work".
"The economy is starting to heal. No doubt at all about how tough it is out there but we don't think there is another option," he said.
"This is not something we can solve with more spending, more borrowing and more debt - the Labour plan we heard about last week. Instead we need to move forward and see the economy rebalanced and that will give a better future for Britain."
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