Instead, he is expected to announce a set of public spending proposals aimed at stimulating enterprise and job creation in his pre-Budget report, due in November.
He will also describe cash for regional development agencies, inner-city schools, transport and the police, to be announced in the comprehensive spending review next month, as contributing to an 'urban renaissance'.
At present VAT is payable at 17.5% on refurbishments, while new homes are rated zero. Lord Rogers called for the rates to be harmonised at zero, if European Union rules allow, or otherwise at 5%, to remove the incentive for housebuilding on greenfield sites. But the chancellor has so far rejected this.
But the Treasury views this proposal as too much like the previous government's enterprise zones, which it believes were unsuccessful.