Chancellor in 45p tax rate U-turn

Chancellor Kwasi Kwarteng, in Birmingham for the Conservative Conference at the ICC, announced this morning that he is abandoning the plan to abolish the top rate of income tax for the highest earners

In a statement, he says "it is clear that the abolition of the 45p tax rate has become a distraction", adding "we get it, and we have listened".

The U-turn comes after several Tory MPs voiced their opposition to the plan announced just 10 days ago in the mini-budget

Speaking to the BBC, Kwarteng says that he and the PM "were in agreement that we wouldn't proceed with the abolition of the rate".

He added "we can now move forward with making the push for the growth plan"

The proposal to scrap the rate paid by people earning over £150,000 a year had been criticised as unfair at time of rising living costs