More from Chancellor Kwasi Kwarteng now, who has been emphasising that the abolition of the 45p rate had become a "terrible distraction" from a "very strong package" of energy support and other tax cuts.

He consistently repeated on BBC Breakfast that the government is focussed on delivering its existing plans and changed course after speaking to people over the last week.

Pressed on whose idea it was to ditch the plan after Prime Minister Liz Truss expressed support for it yesterday, Kwarteng says it was a decision reached collaboratively.

He says he's taken responsibility for the plan, after listening to colleagues, stakeholders and voters.

Image source, Reuters

Kwasi Kwarteng is now speaking to BBC Breakfast following the U-turn announcement in the last few moments.

The chancellor says he has not considered his position at all despite the abrupt U-turn on the 45p income tax rate.

Kwarteng has told BBC Breakfast he and the prime minister have been "talking constantly" about the budget and he emphasises that he has listened to concerns that the policy had become "a distraction".

He added: "We have made the right decision and we can now move forward."

Announcing his plans to ditch the 45p rate cut, Chancellor Kwasi Kwarteng said the plans had become a "distraction from our overriding mission to tackle the challenges facing the country".

Kwarteng says the government's plans were designed to "build a more prosperous economy".

He said it would focus on "delivering the major parts of our growth package", including:

• the energy price cap
• cutting taxes for "30 million hard-working people"
• Moving ahead with "driving supply side reforms - including accelerating major infrastructure projects"

Writing the news on Twitter, Kwarteng said: "We get it, and we have listened."

Chancellor Kwasi Kwarteng has confirmed he will not pursue cutting the 45p rate of income tax on people earning more than £150,000 a year.

Nick Eardley
Reporting from Birmingham

This is a colossal government U-turn.

Yesterday morning, the prime minister insisted she was pressing ahead with the controversial plan to scrap the 45p tax rate.

This morning - it’s dead.

There are two things which have changed:

• one - a growing number of Tory MPs were speaking out publicly to say the policy was wrong
• secondly - an increasing number of parliamentarians were predicting the policy would be voted down in the Commons

Liz Truss will be hoping that by making this decision now, it will limit the damage.

But this is undoubtedly a very difficult and damaging moment for her premiership. Truss had said she would be prepared to make difficult decisions. It turns out this was a difficult decision too far.

The pound has jumped against the dollar in the past hour - believed to be in response to the expected U-turn.

At 6am, it stood at $1.1092, according to Bloomberg. By 7am, it was at about $1.1240.

Image source, Reuters

Nick Eardley
Reporting from Birmingham

The plan to scrap the 45p rate, paid by people earning over £150,000 a year, had been criticised as unfair at a time of rising living costs.

On Sunday, the prime minister told the BBC she was absolutely committed to it as part of an "overall package of making our tax system simpler and lower".

But the measure has seen remarkable opposition from the markets, opposition parties and a growing number of Tory MPs.

Increasingly, it seemed PM Liz Truss did not have the numbers to get it through.

A reminder about what we heard yesterday from the prime minister.

Liz Truss said the government "should have laid the ground better", before setting out its plan to cut taxes.

Chancellor Kwasi Kwarteng's mini-budget saw the cost of government borrowing jump and mortgage rates spike in the UK.

Speaking to the BBC's Sunday with Laura Kuenssberg, the prime minister defended the government's plans, saying that they made the right decisions.

Nick Eardley
Reporting from Birmingham

Within the next hour, Chancellor Kwasi Kwarteng is expected to confirm the government is backing down on its plan to scrap the 45p rate of income tax in a statement.

It comes after opposition from Conservative MPs.

Government sources would not comment.

Welcome to our live coverage of the Conservative Party’s conference in Birmingham.

We’re expecting to hear from Chancellor Kwasi Kwarteng today, who is set to back down on plans to ditch the top 45p rate of income tax, following strong opposition from fellow Tory MPs.

It comes after more than a week of disruption in financial markets since his tax-cutting plans were revealed on 23 September.