The chancellor is set to make his first speech at the party conference on Monday, and he will pledge “a new age of industrialisation” for the United Kingdom. That address arrives within a month of his first Budget, during which he will need to decide whether to reduce spending or increase taxes in order to deal with the growing expense of government borrowing.
Instead, Healey will try to set out a positive vision for British industry. He will tell delegates that Britain’s coal mines are not coming back, but that Labour will remake the nation’s industrial past “for the modern age” through advanced manufacturing. He will also announce plans to boost shipbuilding, with new orders for Royal Navy floating docks and a maritime research vessel.
The Floating Docks at Faslane
Plans for three new floating docks at HM Royal Naval Base Clyde, at Faslane, were first set out in 2023. Rather than being put out to international tender, they will be constructed in the UK. The upgrade is expected to improve Faslane’s facilities for the next generation of British submarines.
These docks are part of a larger upgrade for the Royal Navy’s shipyards, costing £15bn. They are expected to start operating in the early 2030s.
The Research Vessel and the Money Behind It
Sunday’s speech from First Secretary of State Louise Haigh confirmed the government will fund a new marine research vessel as part of its wider plans for a “new era of reindustrialisation”. The ship is scheduled to enter service in the early 2030s, with Healey expected to allocate £115m towards it.
Before delivering his address, Healey spoke about the subject, saying “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.”.
Griffith Calls the Plans Reheated
Andrew Griffith, shadow chancellor, labelled the proposals “reheated announcements”, citing “no clarity on where the money is coming from”.
He went on to add: “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.”
What the Unions Want
The GMB union’s national secretary, Charlotte Brumpton-Childs, has welcomed the change as a significant step for the nation’s shipbuilding industry. She described it as a “massive boost”, arguing that the measure could help secure work for yards across the country.
“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,” she said.
The CBI Survey and the Cost of Living
Andy Burnham, who has previously spoken about his ambition to “reindustrialise” Britain, including in talks last week with US President Donald Trump, faces fresh evidence of a weakening economy. On Monday, the Confederation of British Industry (CBI) is set to publish a survey showing that economic activity across key sectors such as retail and services fell in the three months to September, with manufacturing declining more moderately.
The CBI’s deputy chief economist, Alpesh Paleja, pointed to two forces pushing down profit margins:
- Higher costs tied to energy and wages
- A lack of demand
The addition he made was this: “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.”
Pressure From Labour’s Trade Union Backers
Some of Labour’s trade union backers are putting pressure on the chancellor to take action on the cost of living. Sharon Graham, who leads the Unite union, has asked Healey to “do something for workers and the working class” in his Budget.
He was told to unfreeze income tax thresholds “to put money back into people’s pockets”, along with taking further action on energy bills.
The Union Learning Fund Returns
During his conference address, Healey intends to reveal plans for reviving a training programme organised by trade unions, aimed at assisting workers across England acquire fresh abilities as technological shifts — particularly those driven by AI — reshape their workplaces. The Union Learning Fund will receive £15m from taxpayers, drawn from existing government budgets.
Not being a union member is no barrier to gaining help, with offerings covering everything from essential English, maths and digital skills to training for work in expanding fields such as advanced manufacturing.
What Comes Next
The chancellor will not be sharing any specifics on his Budget plans during his speech at Labour’s annual conference in Liverpool. Instead, the two major choices he faces are detailed in a separate report by Faisal Islam.
Monday brings publication of the CBI survey, with Burnham saving his keynote address for Tuesday.
There is a lingering question about whether the speech introduces new policy or merely recycles old promises. The plans for the docks and the research vessel were first detailed in 2023. One way of reading Griffith’s description of “reheated announcements” is as a way of framing those same commitments again.
Griffith’s line — that Labour is “running scared of making the tough choices needed to pay for Britain’s defence” — is a direct challenge to the chancellor’s approach. Healey is attempting to build confidence in British industry, but the shadow chancellor’s response highlights the scepticism his announcements are facing.
Unions backing Labour are pushing for relief from rising costs, which adds pressure on Healey to find space in the Budget for Graham’s demands: unfrozen income tax thresholds and cheaper energy bills. Whether he can fit both those requests alongside his shipbuilding promises remains an open question.
Initial signals point to the speech being questioned on what is actually new about it. Healey is promising a new age of industrialisation, yet the critics have already started asking what has shifted since the plans were first announced.
Source material: “Healey to promise 'new age of industrialisation' for UK in conference speech,” the BBC.
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