The government is wholly committed to economic growth, Kwarteng says, and that is why it is offering a new economic deal for Britain.

He adds this will be "backed by an iron-clad commitment to fiscal discipline, more businesses, more jobs, higher pay, and more money for public services".

He says we can't have good schools, a strong NHS and fund the Armed Forces without a strong economy.

The government is aiming for 2.5% annual growth, he says.

"We've done it before and we can do it again," he says.

The Chancellor Kwasi Kwarteng says that "thanks to our energy intervention", the typical person in a semi-detached property will save £1,500 this winter, on top of the £400 discount. And if they are earning an average salary, he adds, they will benefit from an additional tax cut - "almost a £2,000 saving this year alone".

"But I can be frank," he says, about concerns over the plan. "I get it. We are listening and we have listened.

"And now I want to focus on delivering the major parts of our package," he states.

Some chuckles from the audience as the chancellor admits his mini-budget has seen “a little turbulence”.

Image source, Reuters

More from Kwasi Kwarteng now, who says that as Conservatives, "we believe in growth" but that "we [also], as Conservatives, believe people should keep more of the money they earn".

This isn't a radical vision, it's one we all want, he says to applause.

He says the path the UK was on wasn't a good one.

The chancellor then goes on to list some of the changes announced in his mini-budget, including the reversal of the National Insurance tax hike.

More from the chancellor now.

Kwarteng says the government's growth plan will deal with the challenges of today to get Britain moving.

He says the growth plan will ensure a focus on economic growth.

He adds a new approach focused on raising economic growth was needed because that is the only way to deliver higher wages, jobs and revenue to fund pubic services and long-term fiscal sustainability.

Everyone benefits from economic growth, he says.

First applause for Kwasi Kwarteng as he says it is time for the Conservatives to “get on and deliver”.

There are some shouts of “here, here” from the audience as he pays tribute to local Tory mayor Andy Street

The Chancellor Kwasi Kwarteng opens his speech with "what a day".

"It has been tough but we need to focus on the job in hand," he says.

"We need to move forward. No more distractions. We have a plan and we need to get on and deliver it. That's what the public expect from the government," he states.

He goes on to talk about the city of Birmingham - where the conference is being held - and pays tribute to its citizens.

The Chancellor Kwasi Kwarteng is on his feet and is about to deliver his speech.

You can watch it at the top of this page. Stay with us for live updates.

Before the chancellor's speech, delegates are being shown a pre-recorded video from Levelling Up Secretary Simon Clarke.

The hall is mostly full now, but activists are still arriving before Kwasi Kwarteng gets to his feet.

Kate Whannel
Reporting from Birmingham

The conference hall is filling up ahead of the chancellor’s speech.

The stage is decorated with the party’s slogan - Getting Britain Moving - while smaller signs advertise the Conservatives' promise to deliver more jobs and higher wages.

Ambient music wafts from the speakers.

The Conservative MP and Treasury select committee chairman, Mel Stride, says despite the U-turn on the top rate of income tax, there may be "further requirements to unwind" some of the government's tax cutting measures.

Speaking to the BBC World at One programme, he says it is "positive that there's some pragmatism being shown" - referring to the abandoning of the change in to the top rate ofincome tax - but that "economically, it's not a big thing".

"It's about £2bn out of the £45bn of unfunded tax cuts," he says, "so the main economic issues haven't gone away, even if the political ones have been made easier."

He says the other unfunded tax cuts would be "deeply problematic in a number of ways," and that there may be "further requirements to unwind some of those positions".

Ione Wells
Political Correspondent, BBC News

The queue to see the chancellor’s speech is already snaking far and wide along the conference centre.

Up and down stairs, and around corners.

It would always be a well-attended event. But today’s U-turn over tax cuts for the highest earners has given it extra intrigue. There’s a buzz in the queue as people exchange their thoughts on the move.

The speech was briefed last night as being about how “we must stay the course” when it comes to the government’s tax cutting plans.

There’s no doubt there will have had to be some last minute tweaks to the speech.

After a day of all the wrong headlines for him, Kwasi Kwarteng will be hoping to turn the conversation here back to his other ideas that he hopes will grow the economy.

Former Conservative minister Stephen Crabb says reversing plans to scrap the top rate of income tax was "the correct decision".

He tells the BBC the issue had become a "huge distraction from what we should have been talking about", which he says is the government's support on energy bills.

Asked whether it was a communications or policy error by the government, he says: "I think it was both."

Fellow Tory MP Ben Bradley agrees it was the right decision to U-turn on the policy.

However, he argues the government's economic plan and the principles behind it were the right ones.

He says he is "more than happy to defend the principle of tax cuts".

Bradley says that the way the policy was announced, was perhaps "throwing too much at people a bit too fast".

“If you want to get across the narrative of continuing that levelling up agenda… maybe there’s too [many] tax cuts in one go," he says.

Katie Thompson
Reporting from Birmingham

Cafe owner Frank Mobed is considering the future of his business for the first time in his 28 years of running it.

“I have to think seriously about what to do," he says.

"The way things are going and prices going up, I may have to close up. I’ll give it another year and see how it goes.

“People are spending less, there are no customers; at one time, I used to be packed, I’m worried.”

Reacting to the U-turn by the chancellor, the 65-year-old adds: “They need a proper captain to steer the ship."

Nick Eardley
Chief political correspondent

Twenty-four hours can be a long time in politics. Just ask Liz Truss.

On Sunday morning, she was telling Laura Kuenssberg her plan to scrap the additional rate of tax was here to stay.

Are you completely committed to it? Yes, she replied confidently.

As late as last night, senior ministers were defending the plan in the fringe meetings around the conference.

But something had changed.

The prime minister and chancellor held a series of crisis talks over the course of Sunday, as it became increasingly clear the policy was unsellable.

The telltale signs were there. Conservative MPs were hitting the airwaves and social media to say they thought it was wrong. They had a talisman in the form of Michael Gove.

Grant Shapps - famous around Westminster for his ability to predict the result of votes - warned the government could lose in the Commons. Privately, Labour was confident of the same.

And by the time Mr Shapps appeared on the BBC's News at 10pm - to say the government had got its priorities wrong - the policy was already destined for the dustbin.

It was late evening when the final decision was made. Liz Truss and Kwasi Kwarteng gathered for talks in the Hyatt Hotel in Birmingham, just beside the conference venue. They both now agreed: the policy had to be dumped immediately.

Read more here.

In Birmingham, where Conservatives are holding their annual party conference, dozens of protesters have shown up to voice anger against the government.

Unsurprisingly, the country's finances have been the focus of many demonstrations. But other issues have been raised, too.

Image source, PA Media

Image source, PA Media

Image source, PA Media

Image source, Reuters

If you're just joining us, there's a lot going on in the world of UK politics. Here's a rundown of today's key events so far.

U-turn: The government backtracked on its plan to abolish the top rate of income tax following a mounting backlash. Chancellor Kwasi Kwarteng said the move had become a "distraction" from the government's wider plan to stabilise the economy.

Calls to quit: Kwarteng rejected calls for his resignation, but that hasn't stopped Lib Dem and Labour MPs pushing for it. UK PM Liz Truss also faced a backlash after insisting yesterday that the tax cut would go ahead, only for it to be revoked this morning.

MPs hit back: Various Tory MPs have spoken out with concerns over support for Truss, with former minister Nadine Dorries urging the new PM to call for a general election. Business secretary Jacob Rees-Mogg said he didn't think there was a requirement for one. Meanwhile, Michael Gove said the government's U-turn showed Tuss had bitten off more than she could chew with cutting taxes.

Pound rises: The pound rose against the dollar - to $1.12 - following Kwarteng's announcement earlier.

Coming up... Kwarteng is due to give his party conference speech at around 4:15pm. He'll be followed by Culture Secretary Michelle Donelan and International Trade Secretary Kemi Badenoch.

Image source, Getty Images

Conservative MP Daniel Kawczynski says he is "disappointed" that the chancellor has abandoned the plan to abolish the top rate of income tax, but he was confident the mini budget would now have the support of MPs.

“I think he should have continued with it," the MP for Shrewsbury and Atcham told BBC Shropshire.

"Clearly there wasn't a majority of Conservative MPs that supported the move at this time, there was a backlash in the media, the markets were temporarily spooked, and that's why perhaps the chancellor has decided to postpone such an announcement.

“If you change policy you’re attacked for doing a U-turn by the media and if you stick to your guns you’re described as arrogant and intransigent so I don’t think he can win either way," he added.

Speaking from the Conservative party conference in Birmingham, Mr Kawczinski said he had spoken to a university friend this weekend who he said employs 7,000 people and generates millions of dollars but had moved overseas due to UK tax policies.

The MP said his entrepreneur friend said UK taxes were "so pernicious and the HMRC is so complex and aggressive to entrepreneurs like myself it's not worth the candle".

When pressed on whether he had recently spoken to anyone in the bottom 10% of income earners, Mr Kawczinski said the question was "inappropriate" and added "I talk to benefit claimants all the time".

Brian Wheeler

Image source, Getty Images

Levelling up (remember that?) is the key to a Conservative victory at the next general election, two leading 'red wall' Tories have told a conference fringe meeting.

Tees Valley Mayor Ben Houchen dismissed the party’s dramatic slide in the polls as a “blip”.

He said the party could win in 2024, if first-time Tory voters from 2019 could point to a “demonstrable, physical difference” in their towns.

“It is a natural human instinct to want to be proven right. They want to go down the pub and say ‘I knew I was right to vote Conservative’,” he said.

The new government was “going for broke” in its efforts to get projects under way, including new Investment Zones, he told the meeting at the Tory conference in Birmingham.

Bishop Auckland MP Dehenna Davison, who recently became a Levelling Up minister, said Houchen’s analysis was spot on.

She promised the locations of investment zones, with tax breaks for firms who locate there and relaxed planning regulations, would be announced early in the new year at the latest.

Business Secretary Jacob Rees-Mogg has also been speaking about the suggestion from former cabinet ally Nadine Dorries that Liz Truss requires a general election to make significant policy shifts away from those in 2019 Tory manifesto.

He told the Telegraph event that he and Dorries used to get on "like a house on fire" around the Cabinet table and agreed on "almost everything" when she was culture secretary.

But he added: "I don't think there's going to be an immediate election and I don't think there's a requirement for one."