UNITED KINGDOM: John Healey will promise “a new period of industrial growth” for the UK in his first Labour conference speech as chancellor on Monday.
Healey will tell delegates that “our coal mines are not coming back”, but Labour will rebuild Britain’s industrial past “for today” by supporting advanced manufacturing.
He will also announce plans to grow Britain’s shipbuilding industry, with new orders for Royal Navy floating docks and a marine research ship.
With a month to go until his first Budget, the chancellor is under pressure to cut spending or raise taxes to deal with the rising cost of government borrowing.
But he is not expected to share any details about his Budget plans in his speech at Labour’s annual conference in Liverpool.
Instead, he will present a hopeful plan for the future of British industry, based on what he will call “new confidence in Britain”.
The former defence secretary will announce that three new floating docks at HM Royal Naval Base Clyde, in Faslane, will be built in the UK instead of being offered to companies around the world.
Plans for the docks were first announced in 2023. They are expected to improve Faslane’s facilities for the next generation of British submarines.
The docks are part of a wider £15bn plan to improve Royal Navy shipyards and are expected to be ready in the early 2030s.
Defence Secretary Wes Streeting told BBC Breakfast on Monday that the floating docks showed how defence spending could create “more jobs and opportunities” in the UK.
The government is under pressure to spend 3% of the UK’s total economic output on defence by 2030.
“Spending more on defence means making choices, and I strongly believe that in the dangerous and uncertain world we live in, it is worth paying more for defence,” Streeting said.
First Secretary of State Louise Haigh said in a speech on Sunday that the government would also order a new marine research ship as part of plans for “a new period of industrial growth”.
The chancellor is expected to announce £115m for the ship, which is also expected to be ready in the early 2030s.
Before his speech, Healey said: “By supporting British shipyards, we are helping keep the country safe and protecting the industries that will create growth and the skills the UK needs in the future.”
Shadow chancellor Andrew Griffith called the plans “old announcements being repeated” and said there was “no clear explanation of where the money will come from”.
He added: “Labour is afraid to make the hard choices needed to pay for Britain’s defence. All they can offer is docks they have already announced and more empty promises from Healey. Only the Conservatives will cut welfare spending to pay for defence.”
Charlotte Brumpton-Childs, a senior official at the GMB union, which has supported the plan, said it would be a “huge boost” for UK shipbuilding.
“For too long, valuable contracts have gone to overseas shipyards, which are often supported by government money. This policy could help UK shipyards and the communities that rely on them,” she said.
Prime Minister Andy Burnham, who is due to give his main conference speech on Tuesday, has previously spoken about his goal to rebuild British industry, including in talks last week with US President Donald Trump.
But a survey due to be published on Monday by the Confederation of British Industry (CBI) will point to falling business activity in areas such as shops and services in the three months to September. Manufacturing activity has fallen by less.
CBI deputy chief economist Alpesh Paleja said higher energy and employment costs, along with weak demand, were continuing to reduce company profits.
He added: “Uncertainty before next month’s Budget is also stopping some sectors from doing more. With new pressure on government finances, the Budget must make clear that there will be no more increases in the cost of hiring, investing and running a business.”
Some of Labour’s trade union supporters are also urging the chancellor to do more to help with the cost of living. Sharon Graham, head of the Unite union, has called on Healey to “do something for workers and working people” in his Budget.
She urged him to keep income tax limits from rising, which would leave more money in people’s pockets, and to take further action on energy bills.
In his conference speech, Healey will also announce plans to restart a trade union training scheme. It will help workers in England learn new skills as technology, including AI, changes the workplace.
The Union Learning Fund will receive £15m from existing government budgets.
Workers do not need to be union members to take part. Training could include basic English, maths and computer skills, as well as skills for growing industries such as advanced manufacturing.
Reported By : Our Correspondent I UK
