Healey to Promise 'New Age of Industrialization' for Britain in Conference Speech

LIVERPOOL —John Healey will use his first Labour conference speech as chancellor on Monday to promise a 'new age of industrialization' for Britain, arguing that the country can rebuild its manufacturing strength for the modern economy even as it confronts deep fiscal constraints.

Healey is expected to tell delegates that 'our coal mines are not coming back,' but that Labour will remake Britain's industrial past 'for the modern age' by backing advanced manufacturing. The speech is designed to project what he will call 'new confidence in Britain,' with a focus on jobs, national security and supply-chain resilience.

At the same time, the chancellor is under mounting pressure to cut spending or raise taxes to address the growing cost of government borrowing. With only a month until his first Budget, Healey is not expected to disclose specific tax-and-spending measures in Liverpool. Instead, his address will attempt to set a broader industrial vision while leaving the fiscal choices for later.

The former defense 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. The plans, first outlined in 2023, are intended to upgrade Faslane's facilities for the next generation of British submarines.

The docks are part of a wider £15bn upgrade program for Royal Navy shipyards and are expected to enter service in the early 2030s. Officials see the decision as a signal that defense spending can support domestic yards and the communities that rely on them.

First Secretary of State Louise Haigh said in a Sunday speech that the government would also commission a new marine research vessel as part of what she described as a 'new era of reindustrialization.' Healey is expected to announce £115m in funding for the ship, which is also due to come into service in the early 2030s.

Ahead of 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.'

The plans drew immediate criticism from Shadow Chancellor Andrew Griffith, who called them '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 defense. All they can offer is reannounced docks and more hot air from Healey. Only the Conservatives will cut the welfare bill to fund defense.'

Unions that have pushed for shipbuilding work to remain in the UK welcomed the move. Charlotte Brumpton-Childs, national secretary of the GMB union, said it would be a 'massive boost' for the British shipbuilding sector. 'For too long juicy contracts have been sent to overseas — often subsidized — yards,' she said. 'This policy could reinvigorate UK yards and the communities that depend on them.'

The conference backdrop is mixed. Prime Minister Andy Burnham, who is due to deliver his own conference speech on Tuesday, has spoken repeatedly about his ambition to 'reindustrialize' Britain, including in talks last week with U.S. President Donald Trump.

But a survey to be published Monday by the Confederation of British Industry is expected to highlight 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, combined with weak demand, were continuing to squeeze profit margins. 'Uncertainty ahead of next month's Budget is also holding back activity in some sectors,' he said. '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.'

Healey also faces pressure from some of Labour's trade union allies to do more on the cost of living. Sharon Graham, general secretary of the Unite union, has called on the chancellor 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 to take further action on energy bills.

In his speech, Healey will also announce plans to bring back 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 taxpayer money, taken from existing government budgets. Employees do not need to be union members to benefit. Support options will range from essential English, math and digital skills to training for jobs in growing industries such as advanced manufacturing.

The announcements are unlikely to settle the bigger political fight over how Britain pays for its defense, industrial and social priorities. For Healey, the challenge in Liverpool is to persuade voters and business that a more active industrial policy can coexist with the discipline required by the upcoming Budget — and that the promise of a new industrial age is more than a slogan.

— BBC

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