Chancellor John Healey is set to deliver his first speech to the Labour annual conference on Monday, where he will promise a “new age of industrialisation” for the United Kingdom. While he intends to tell delegates that “our coal mines are not coming back,” the chancellor plans to outline a vision for remaking Britain’s industrial heritage for the modern era by investing heavily in advanced manufacturing and promoting a sense of “new confidence in Britain.” He added: “Labour are running scared of making the tough choices needed to pay for Britain’s defence. Only the Conservatives will cut the welfare bill to fund defence.
A core element of this industrial strategy includes a significant boost to domestic shipbuilding. Healey will announce that three new floating docks for HM Royal Naval Base Clyde at Faslane will be constructed within the UK rather than being put out for international tender. These facilities, first proposed in 2023, are intended to support the next generation of British submarines and form part of a broader £15bn upgrade for Royal Navy shipyards, with the docks expected to enter service in the early 2030s. All they can offer is reannounced docks and more hot air from Healey.
Complementing these efforts, First Secretary of State Louise Haigh confirmed on Sunday that the government will commission a new marine research vessel. The chancellor is expected to dedicate £115m toward the ship, which is also slated for service in the early 2030s. Healey stated that prioritizing domestic shipyards will bolster national security and create resilience in industries vital for long-term growth.
The policy has faced criticism from Shadow Chancellor Andrew Griffith, who labeled the plans as “reheated announcements” that lack clarity on funding. Griffith claimed the government is failing to make the difficult choices required to finance national defence, arguing that such initiatives are mere “hot air.” In contrast, Charlotte Brumpton-Childs of the GMB union welcomed the move, suggesting it would provide a “massive boost” to the sector by preventing contracts from being sent to subsidized overseas competitors. 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.
While focusing on industrial strategy, the chancellor remains under considerable pressure regarding his upcoming Budget. Prime Minister Andy Burnham, scheduled to speak on Tuesday, has also expressed personal ambitions for reindustrialization following discussions with US President Donald Trump. However, the Confederation of British Industry (CBI) is warning of economic headwinds, with deputy chief economist Alpesh Paleja noting that rising energy and employment costs, combined with weak demand, are squeezing profit margins. The CBI warns that uncertainty ahead of the October Budget is currently stalling investment across retail and services. The chancellor is under pressure to cut spending or raise taxes to tackle the ballooning cost of government borrowing, with just a month to go until his first Budget. The Budget must draw a clear red line under any more rises in the cost of hiring, investing and doing business, against the backdrop of renewed fiscal pressures.
Trade union leaders are simultaneously pushing for economic relief. Unite general secretary Sharon Graham has urged Healey to provide direct support for workers by unfreezing income tax thresholds and addressing high energy costs to help households manage the cost of living. She urged him to unfreeze income tax thresholds “to put money back into people’s pockets” and take further action on energy bills.
To assist workers in adapting to technological shifts such as AI, Healey will announce the reinstatement of the Union Learning Fund. The government plans to allocate £15m in taxpayer money toward this initiative, which provides training for both union and non-union members. Support will cover a range of educational needs, from essential English, maths, and digital literacy to specialized training for roles in expanding fields like advanced manufacturing.
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