Chancellor Kwasi Kwarteng has confirmed that the government is axing plans to give the wealthiest 1% a tax cut following a bitter backlash from Tory MPs.

Mr Kwarteng said in a tweet that the measure had become a “distraction” from his objection to grow the economy.

He said: “We get it, we have listened.”

Politics live: Major U-turn after prominent Tories speak out

The 45p income tax cut policy was one of a series that prompted turmoil in the markets over the past week, with the pound reaching record lows against the dollar.

The plan was announced in the mini-budget, last Friday, but would have had to go to a vote before it could be approved.

Former cabinet minister Grant Shapps, one of the big hitters in the Tory party who had publicly hit out at the policy, told Sky News that it would not have got through parliament.

“There is no mathematical way MPs would go and vote for this,” he said.

“The policy didn’t stack up and it didn’t make sense.

“You didn’t have to knock on many doors to see how unpopular It had been.”

Mr Kwarteng abandoned the policy hours before he was due to defend it at the Conservative Party conference.

Asked where the U-turn had left his credibility, the chancellor told BBC Breakfast: “We are 100% focused on the growth plan.”

He added: “I have been in Parliament for 12 years, there have been lots of policies which, when government listens to people, they have decided to change their minds.”

Asked if it had considered resigning, he said: “Not at all. What I am looking at is the growth plan and delivering what is a radical plan to drive growth in this country, to reduce taxes, to put more money that people earn in their pockets.”