Healey to promise 'new age of industrialisation' for UK in conference speech

Healey to promise 'new age of industrialisation' for UK in conference speech

John Healey will promise "a new age of industrialisation" for the UK when he gives his first Labour conference speech as chancellor on Monday.

Healey will tell delegates that "our coal mines are not coming back", but that Labour will reshape Britain's industrial past "for the modern age" by supporting advanced manufacturing.

He will also set out plans to strengthen Britain's shipbuilding sector, including new orders for Royal Navy floating docks and a maritime research vessel.

With only a month left before his first Budget, the chancellor is facing pressure to cut spending or increase taxes to address the rising cost of government borrowing.

However, he is not expected to give any details of his Budget plans in his speech at Labour's annual conference in Liverpool.

Instead, he will try to present an upbeat vision for the future of British industry, built around what he will describe as a "new confidence in Britain".

The former defence secretary will announce that three new floating docks at HM Royal Naval Base Clyde, at Faslane, will be built in the UK rather than put out to international tender.

Plans for the new docks were first announced in 2023 and are expected to improve Faslane's facilities for the next generation of British submarines.

The docks are part of a wider £15bn upgrade programme for the Royal Navy's shipyards and are expected to enter service in the early 2030s.

First Secretary of State Louise Haigh said in a speech on Sunday that the government would also commission a new marine research vessel as part of plans for a "new era of reindustrialisation".

The chancellor is expected to announce £115m in funding for the ship, which is also due to come into service in the early 2030s.

Before his speech, Healey said: "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 said the plans were "reheated announcements" with "no clarity on where the money is coming from".

He added: "Labour are running scared of making the tough choices needed to pay for Britain's defence.

"All they can offer is reannounced docks and more hot air from Healey. Only the Conservatives will cut the welfare bill to fund defence."

Charlotte Brumpton-Childs, national secretary of the GMB union, which has campaigned for the move, said it would be a "massive boost" for the UK's shipbuilding sector.

"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," he added.

Prime Minister Andy Burnham - who is due to deliver his big conference speech on Tuesday - has previously spoken about his ambition to "reindustrialise" Britain, including in talks last week with US President Donald Trump.

But in a survey to be published on Monday, the Confederation of British Industry (CBI) will point to falling economic activity across key sectors such as retail and services in the three months to September, with manufacturing declining more moderately.

CBI deputy chief economist Alpesh Paleja said rising energy and employment costs, together with weak demand, were continuing to squeeze profit margins.

He added: "Uncertainty ahead of next month's Budget is also holding back activity in some sectors.

"Against the backdrop of renewed fiscal pressures, the Budget must draw a clear red line under any more rises in the cost of hiring, investing and doing business."

The chancellor is also facing pressure from some of Labour's trade union backers to do more to address the cost of living.

Sharon Graham, general secretary of the Unite union, has called on Healey to "do something for workers and the working class" in his Budget.

She urged him to unfreeze income tax thresholds "to put money back into people's pockets" and take further action on energy bills.

In his conference speech, Healey will also announce plans to revive a training scheme run by trade unions, to help workers in England gain new skills and adapt as technology, including AI, changes the workplace.

The Union Learning Fund will receive £15m in taxpayers' money, taken from existing government budgets.

Employees do not need to be union members to benefit, with support ranging from essential English, maths and digital skills to training for jobs in growing industries such as advanced manufacturing.