Philip Hammond unleashes an attack on the Labour government of the 1970s, saying that the UK "slipped further and further behind" its competitors.

"As things got worse the Labour government doubled down, inflicting more misery on a country that was already the sick man of Europe," he said.

He adds that things "finally fell apart" in 1979 when the British people voted to "put Labour's failed experiment behind them".

He says that Britain embraced the "radical vision of economic liberation" presented by Margaret Thatcher.

Image source, Getty Images

The Chancellor Philip Hammond takes to the stage to make his conference speech. The Prime Minister Theresa May is in the hall to listen to his speech.

Mr Hammond harks back to the famous speech made by former Tory leader, William Hague at the age of 16.

BBC political editor Laura Kuenssberg says we should expect more defence of the free market in Philip Hammond's speech.

There is a spectrum of opinion among party members about how to respond to the election result, she adds.

Some think a change of direction is needed while some are urging the party not to panic and "junk" the party's ideology "just because they ran a bad election campaign".

Conference delegate Julie Marson calls on the Conservatives to use language that injects "passion and sincerity" into their arguments.

It's important, she says, to understand the "emotional forces" that affect people in different parts of the country. She applauds Theresa May for the speech she made the day she entered Downing Street.

Julie Marson suggests less talk of "austerity" and more about "living within your means".

The Daily Politics

Conservative MP Peter Bone says, if Theresa May can deliver what he calls "a clean Brexit", she will be "a national hero" and could win the next election.

The Daily Politics

Conservative MP and Brexit supporter Peter Bone is asked for his reaction to the prospect of a transition period longer than two years.

"It would be a nightmare," he tells the Daily Politics. "It would tend to indicate that we're not coming out."

But he thinks "it's not going to happen".

And should Boris Johnson be sacked for his comments that a Brexit transition should not be "a second longer" than two years?

"No! He's foreign secretary. Of course he's going to talk about one of the biggest foreign issues."

The Daily Politics

Chief Secretary to the Treasury Liz Truss says the government should not pause its roll-out of Universal Credit.

Universal Credit, which consolidates a number of benefits into one payment, is "all about making sure that work pays", Ms Truss tells the Daily Politics.

At the moment, she says, "there's a poverty trap" as people can take home less money for working longer hours under the old benefit system.

Former adviser Dame Louise Casey has urged the prime minister to pause the roll-out of the new benefit system, amid concerns over payment delays causing hardship.

David Gauke announces a change to the Universal Credit system to ensure people do not have to wait six weeks - or longer - for their first payment.

It follows criticism that there could be "dire" consequences for some families if Universal Credit is allowed to continue in its current form.

Dame Louise Casey called for the roll-out of the benefit to be paused.

Mr Gauke tells conference that he understands the concerns that have been raised, saying: "I am determined to ensure that those who need support earlier in the month will get it."

He announces that he is "refreshing" the guidance to DWP staff to ensure that anyone who needs an advance payment will be offered it up-front.

"Claimants who want an advance payment will not have to wait six weeks. They will receive this advance within five working days." he says.

And someone in "immediate need" would get a payment on the same day.

The Work and Pensions Secretary, David Gauke, makes an emphatic statement about Conservative values early on in his speech.

"As Conservatives we do not believe, we have never believed, that we can turn our backs on those most in need.

"As Conservatives we believe in a strong and compassionate welfare state that helps everyone fulfil their potential."

He says the "strength and compassion" of a welfare system should not be measured just by the money you spend, but by the lives you transform.