"I challenge anyone to tell me with a straight face that all of that isn’t what the North really needs," Sunak says, topping off his transport plans.

He insists this plan will drive more growth and opportunity in the North than a faster train to London would.

He confirms that the government will complete a line from Birmingham to Euston, and journey times will be cut between Manchester, Birmingham and London by 30 minutes.

He address Tory Mayor of the West Midlands Andy Street, saying while they have different views on HS2, they "can work together" to ensure quicker trains and more capacity between Birmingham and Manchester.

There was a flurry of promises from the prime minister there. We'll be analysing all of them in the newsroom, but in the meantime, he said the government will:

• Protect the £12bn to link up Manchester and Liverpool as planned - this won't be with high-speed rail
• Build the Midlands Rail Hub, connecting 50 stations
• Help Andy Street extend the West Midlands Metro
• Build the Leeds tram, electrify the North Wales main line
• Upgrade the A1, the A2, the A5, the M6…
• Connect our Union with the A75 boosting links between Scotland and Northern Ireland
• Fund the Shipley bypass, the Blyth relief road and deliver 70 other road schemes
• Resurface roads across the country
• Bring back the Don Valley line
• Upgrade the energy coast line between Carlisle, Workington and Barrow

As we just reported, HS2 will run to Euston, as planned. But Sunak says the HS2 management will no longer run the project there.

"There must be some accountability for the mistakes made, for the mismanagement of this project," he says.

"We will instead create a new Euston development zone."

Sunak says HS2 will travel all the way to Euston station in London - in line with the initial plan.

In addition to the Manchester branch of the troubled rail project being axed, it was reported that HS2 would be tweaked so that trains terminated at Old Oak Common - a planned transport hub in the suburbs of West London.

For some time, single bus fares have been capped in England at £2.

Sunak now says he will "keep that fare across the whole country".

The main players in the party gave a warm reaction to the PM's HS2 announcement, with woops and cheers heard in the auditorium.

And all eyes were on Transport Secretary Mark Harper...

Here's more from Sunak: "With our new Network North, you will be able to get from Manchester to the new station in Bradford in 30 minutes, Sheffield in 42 minutes, and to Hull in 84 minutes on a fully, electrified line."

Sunak now says "we will reinvest every single penny" saved from HS2, which he says is £36bn, in hundreds of new transport projects in the North and the Midlands, and across the country.

"Every region outside of London will receive the same or more government investment than they would have done under HS2, with quicker results," he says.

Rishi Sunak has just said he's cancelling "the rest of the HS2 project" - meaning everything outside the London to Birmingham leg, which is already under construction.

As we just said, Business Secretary Kemi Badenoch just got a special shout out from the PM, who thanks her for cutting EU red tape.

Here's how she reacted:

Image source, PA Media

Sunak acknowledges that "we haven't grown quickly enough in recent years".

But he adds that the UK has "had one of the fastest recoveries from the pandemic," in contrast to other European countries.

The prime minister says that since leaving the EU and the single market, Britain has "grown faster than France and Germany".

Commending Kemi Badenoch, the trade secretary, Sunak says she was able to cut "Brussels red tape," which in turn saved small businesses money.

Sunak says you can't borrow your way out of inflation.

"That's why halving inflation was the first and most important of five priorities I set out at start of this year," he says.

Inflation is the biggest destroyer of all, of industry of jobs and society, he adds.

"I know you want tax cuts, I want them too and we will deliver them, but the best tax cut we can give right now is to halve inflation and ease the cost of living".

Inflation is not a tax, although high inflation can clearly make people worse off because it means higher prices.

Henry Zeffman
Chief political correspondent, reporting from the Conservative conference

Rishi Sunak is arguing that after almost a year in No 10 he has learnt that politics “doesn’t work the way it should”.

The audacious element of his argument is to say that “people are right” to complain about politicians “saying things and then nothing ever changing".

Sunak’s promise that he specifically is “different” to other politicians points to a very personal, almost presidential election campaign to come.

Sunak attacks the opposition again, saying Labour will do and say "as little as possible" and hope nobody notices. He says Keir Starmer's party are "about power for the sake of power".

If things are going to change, it is only the Tories who can change it, he insists.

"And where common sense is under assault, we will defend it," he says.

A close-up shot of the lectern reveals Rishi Sunak's other job - raising two daughters. He is wearing a bracelet saying "dada".

"There is an undeniable sense that politics doesn't work the way it should," Sunak says, reaching a part in the speech which was trailed to journalists yesterday evening.

He says people are exhausted with politicians saying things and then "nothing changing".

"And you know what people are right," he adds.

Sunak says it "doesn't have to be this way" and there is need for fundamental change in the country, to much applause.

Image source, PA Media

Throwing back to the veterans' minister who spoke a little earlier, Sunak says his government and his party are committed to supporting the armed forces and those who have served.

He says the UK's armed forces and intelligence services are the "best in the world" and his cabinet is working to make a country "fit for our heroes".

He reminds those in the room that the UK was the first country to agree to train Ukrainian pilots and provide other types of aid.

"Slava Ukraini (glory to Ukraine!)," he adds.

Turning to defence issues, Sunak says the UK is the "bulwark of European security", before he attacks Labour for the Corbyn era, saying "you can never trust Labour" with national security.

Sunak says seeing the difference his parents made to people's lives is what made him want to go into politics.

Speaking about his pharmacist mum, he says: "The Sunak pharmacy left me with a lasting respect for every small family business."

He says in his first year as PM he's made progress on his five priorities, and goes on to discuss some of the government's achievements, including on veterans' rights.

To recap, his five priorities are to "halve inflation, grow the economy, reduce debt, cut waiting lists, and stop the boats". We analysed his progress on them here.

Becky Morton
Reporting from the Conservative conference

Image source, Reuters

Akshata Murty’s introduction, which had a focus on her husband's upbringing and family background, has set the tone for the prime minister's speech - we’re expecting it to be highly personal.