Neil Mitchell has had a crack at Tim Pallas after the Victorian treasurer blamed the building industry for the government’s decision to abandon a proposed social housing levy.

“Of course it is all somebody else’s fault,” the 3AW Mornings host said sarcastically on Tuesday.

Mr Pallas said the levy, which would have taxed developers to help fund the construction of social housing, was being scrapped because of a “negative” response from those in the sector.

“We expected to see a better response from the building and construction industry,” Tim Pallas said when announcing the news.

But that didn’t wash with Neil Mitchell.

“What a load of nonsense,” he said.

“Do you know what was behind it? People within the Labor Party objected strongly (because) it was madness, particularly in an election year, to bung a tax on housing.

“The government has done a backflip in two weeks, not because of some nonsense from the property industry, but because of pressure within its own ranks.

“And they give us that sort of spin? It’s a damn insult. It really is.”

Press PLAY below to hear Neil Mitchell explain

(Photo by Daniel Pockett/Getty Images)