Chancellor Kwasi Kwarteng has announced a U-turn on the plan to cut the top rate of income tax.

Mr Kwarteng said in a statement: “From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy.

“However, it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country.

“As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened. This will allow us to focus

The chancellor’s U-turn comes after a backlash from Labour, with leader Jeremy Corbyn saying the tax cut would have benefited “a tiny minority at the top”.

We get it, and we have listened. pic.twitter.com/lOfwHTUo76

— Kwasi Kwarteng (@KwasiKwarteng) October 3, 2022

Speaking to BBC Breakfast, he said that “95% of the package is what we are focused on” and the rest of the “growth plan” will be kept in place.

Mr Kwarteng says the decision came after talking to MPs, as well as constituents.

Asked if he had considered resigning, Mr Kwarteng said “not at all”, and that he is totally focused on getting away from a “high-tax route”.

In response, the pound has returned to the level it was at before the mini-budget 10 days ago, with a pound worth around $1.12.