John Healey will use his first Labour conference speech as chancellor to promise a “new age of industrialisation” for the UK, with advanced manufacturing and domestic shipbuilding at the centre of his plans. The British shipbuilding programme will include new Royal Navy floating docks and a marine research vessel, while the chancellor is expected to present the proposals as part of a wider effort to rebuild confidence in British industry.
Healey will tell Labour delegates in Liverpool that Britain cannot return to its former coal-mining economy, but that the country can draw on its industrial heritage while developing modern manufacturing. He is expected to say: “Our coal mines are not coming back. But this is how Britain’s industrial past is being remade now for the modern world. This is the new age of industrialisation. A new confidence in Britain.”
British Shipbuilding Plans Target Royal Navy
A central part of the announcement will be the decision to build three new floating docks for the Royal Navy’s submarine service at HM Naval Base Clyde in Faslane through a UK-only competition. The programme, known as Programme Euston, was first outlined in 2023 and is intended to upgrade facilities supporting the next generation of British submarines.
The floating docks are expected to enter service in the early 2030s and form part of a wider £15bn programme to upgrade Royal Navy shipyards. The government says the projects will support British workers and businesses while strengthening national security and the country’s industrial capabilities.
Defence Secretary Wes Streeting said investment in defence could also create employment and opportunities in Britain. He argued that spending on defence involved choices and trade-offs, but said investment was necessary given what he described as a dangerous and turbulent international environment.
The plans come as the government faces pressure over its defence spending commitments. The wider debate has also placed greater attention on whether government procurement can support domestic manufacturing while meeting national security requirements.
£115m Marine Research Vessel Announced
First Secretary of State Louise Haigh has also announced plans for a new marine research vessel as part of the government’s wider reindustrialisation programme. Healey is expected to confirm £115m in funding for the vessel, which is also planned to enter service in the early 2030s.
Ahead of his conference 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.”
The chancellor’s proposals come shortly before the next Budget, with pressure on the government over the rising cost of borrowing and the need to make decisions on spending and taxation. Healey is not expected to provide detailed Budget measures in his conference speech, instead focusing on his longer-term vision for British industry.
Opposition Challenges Funding Plans
The proposals have drawn criticism from shadow chancellor Andrew Griffith, who described them as “reheated announcements” and questioned how the government would pay for them. He said Labour was avoiding difficult decisions over defence spending and argued that the plans did not provide sufficient clarity about their funding.
The government’s industrial strategy also comes against a challenging backdrop for businesses. A Confederation of British Industry survey is expected to highlight declining activity across sectors including retail and services during the three months to September, while manufacturing has recorded a more moderate decline.
CBI deputy chief economist Alpesh Paleja said rising energy and employment costs, together with weak demand, were putting pressure on company profit margins. He also said uncertainty surrounding the upcoming Budget was holding back activity in some sectors and called for the government to avoid further increases in the cost of hiring, investment and doing business.
Healey will additionally announce the return of a trade union-run training scheme for workers in England. The Union Learning Fund will receive £15m from existing government budgets, with training covering areas including English, maths, digital skills and preparation for jobs in expanding industries such as advanced manufacturing.
Workers will not need to be union members to benefit from the scheme. The government says the training is intended to help people develop new skills as technology, including artificial intelligence, continues to change the workplace.