Chancellor John Healey is set to deliver his first speech at the Labour conference on Monday, where he will promise a "new age of industrialisation" for the UK. He will state that "our coal mines are not coming back" but emphasize that Labour will aim to modernize Britain's industrial past by supporting advanced manufacturing.
Healey will announce initiatives to enhance Britain's shipbuilding industry, including new orders for Royal Navy floating docks and a maritime research vessel. With a month remaining until his first Budget, he faces pressure to either reduce spending or increase taxes to address the rising cost of government borrowing. However, details regarding his Budget plans are not expected to be disclosed during his speech at the Labour conference in Liverpool.
The chancellor will outline a vision for British industry, focusing on a "new confidence in Britain." He will announce the construction of three new floating docks at HM Royal Naval Base Clyde in Faslane, which will be built in the UK rather than being outsourced. These docks are part of a £15 billion upgrade program for the Royal Navy's shipyards and are anticipated to be operational in the early 2030s.
First Secretary of State Louise Haigh mentioned in her speech on Sunday that the government will also commission a new marine research vessel as part of the reindustrialisation plans. The chancellor is expected to allocate £115 million in funding for this vessel, which is also projected to be operational in the early 2030s.
Healey stated, "By backing British shipyards, we are not only boosting national security but also securing resilience in the industries that will drive growth today while building the capabilities the country needs for the future."
Shadow Chancellor Andrew Griffith criticized the plans as "reheated announcements" lacking clarity on funding sources, asserting that Labour is avoiding necessary tough decisions for Britain's defense.
Charlotte Brumpton-Childs, national secretary of the GMB union, expressed that the initiative would significantly benefit the UK's shipbuilding sector, stating, "For too long juicy contracts have been sent to overseas - often subsidised - yards. This policy could reinvigorate UK yards and the communities that depend on them."
Prime Minister Andy Burnham, who is scheduled to speak at the conference on Tuesday, has previously discussed his ambition to "reindustrialise" Britain, including recent talks with US President Donald Trump.
A survey from the Confederation of British Industry (CBI) will be released on Monday, indicating a decline in economic activity across key sectors, including retail and services, with manufacturing experiencing a more moderate decline. CBI deputy chief economist Alpesh Paleja noted that rising energy and employment costs, coupled with weak demand, are straining profit margins. He emphasized the need for the Budget to avoid further increases in hiring, investing, and operational costs.
The chancellor is also facing pressure from some of Labour's trade union supporters to address the cost of living. Unite union general secretary Sharon Graham has urged Healey to take action for workers and the working class in his Budget, including unfreezing income tax thresholds to provide financial relief and addressing energy bills.
In his conference speech, Healey will also announce plans to revive a training scheme run by trade unions to assist workers in England in acquiring new skills as technology, including AI, evolves in the workplace. The Union Learning Fund will receive £15 million in taxpayer funding from existing government budgets, with support available for all employees, regardless of union membership, covering essential skills and training for jobs in growing industries such as advanced manufacturing.