The Prime Minister has committed to £36bn for “hundreds” of new transport projects across the country after scrapping the Birmingham to Manchester leg of the HS2 line.

The PM said more than £6bn of the money saved would be used for transport projects across the country

Rishi Sunak made the announcement in his closing speech at the Conservative Party conference in Manchester on Wednesday following weeks of speculation.

Announcing the cancellation of the rest of the HS2 project, the PM said “a revolution in the country’s transport infrastructure will see billions of pounds redirected from spiralling HS2 costs to build the daily connections that people depend on – unlocking potential, driving growth and transforming communities”.

The “cornerstone” of this plans will be a new ‘Network North’ that will drive better connectivity across the North and Midlands with faster journey times, increased capacity and more frequent, reliable services across rail, buses and roads.

The plans are being underpinned by the £36bn saved from scrapping the second phase of HS2 with “every penny” planned for investment “in hundreds of transport projects across the country – with every region set to receive the same or more transport investment on an unprecedented scale as a result of the change”.

This includes more than £6bn for investment in transport projects right across the country. Road schemes mentioned by Sunak included work to upgrade the A1, the A2, the A5 and the M6.

The PM also said: “We’ll connect our union with the A75, boosting links between Scotland and Northern Ireland.”

The Government will fund the Shipley bypass and 70 other roads schemes, while roads will be resurfaced around the country.

Following the Prime Minister’s speech, Iain Stewart, chair of the Transport Committee, said: “There will be costs and lost opportunities in not proceeding with HS2 in full. There will also be significant benefits delivered by the new rail and road projects that the PM has announced.”

The select committee has said it will scrutinise the announcements in detail and look at how the Government will assess their deliverability.

Stewart added: “An important role of a cross-party select committee is to take the time to dispassionately dig into and appraise the detail of changes of policy, and the strong views that there will be. I shall be discussing with my colleagues on the Committee our programme for doing this.”

The committee has made recommendations about DfT’s record of delivering major road infrastructure projects in its recent report on Strategic Road Investments and is currently holding an inquiry into the Government’s strategic transport objectives and how it plans investment.

The AA commented on the road transport implications of the announcement. Edmund King, president, said: “Cars and road transport are vital to how we live and work. Government figures show 58% of trips and 78% of distance travelled are made with cars, with more than 80% of freight being transported by road and indeed the most popular form of public transport, busses, use the roads.

“All modes of transport are important in the UK with public transport playing a major role particularly in our towns and cities. An efficient road network though is vital for the economy and environment. Congestion costs businesses billions of pounds and is detrimental to air quality and CO2 emissions.

“Upgrading key roads will greatly enhance connectivity and indeed road safety. Improving unsafe, congested, single carriageway roads and building essential bypasses, can improve traffic flows and air quality whilst reducing collisions.

“The AA supports the upgrading of key roads announced today and the intention to resurface roads across the country and looks forward to seeing the full plans and details. There are of course other important schemes such as the Lower Thames Crossing that are also crucial for connectivity than need to be progressed.”

However, Campaign for Better Transport said “ragtag and bobtail transport projects will not compensate for the hammer blow delivered today”.

Director of external affairs Norman Baker commented: “By cancelling the northern leg of HS2, the Prime Minister has taken much needed rail investment and ploughed it into yet more roads. The roads budget is already bloated, and today’s announcement simply diverts money from a sustainable transport future into unsustainable and unchecked traffic growth.”

He added: “We need more detail about what the transport projects that will replace the northern leg of HS2 are and when they will actually be delivered. We also need to make sure that the PM is not double counting here as some of the schemes he mentioned have already been promised and are not new. What we do know is that ditching the Northern leg is not just a serious blow to the North of England and its people, but to the country as a whole.”

And Greater Manchester Chamber of Commerce’s director of policy, Chris Fletcher said: “Whilst this may sound like a better use of the money with new lines promised and road schemes included too, the simple fact is that irrespective of what it is called we are still no nearer getting the transport network that we actually needed years ago to unlock the north’s potential. We have been promised a lot before and nothing has been done and this latest attempt from government will be treated with cynicism and scepticism by a lot of people.”