UK Chancellor Vows 'New Age of Industrialisation' with Focus on Advanced Manufacturing and Shipbuilding

Chancellor John Healey is set to promise "a new age of industrialisation" for the United Kingdom in his first Labour conference speech as chancellor, focusing on advanced manufacturing and bolstering the shipbuilding industry.

Healey plans to announce new orders for three floating docks for HM Royal Naval Base Clyde, which will be built in the UK instead of being put out to international tender. These docks are part of a broader £15 billion upgrade program for the Royal Navy's shipyards, with the new facilities expected to be operational in the early 2030s. The government also intends to commission a new maritime research vessel, with an estimated £115 million in funding, also slated for service in the early 2030s.

"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," Healey stated ahead of his speech. The GMB union welcomed the announcement, calling it a "massive boost" for the UK's shipbuilding sector and its dependent communities, noting that lucrative contracts have frequently gone overseas.

While Healey is expected to set out a positive vision for British industry, he is not anticipated to detail his upcoming Budget plans, which are under pressure due to rising government borrowing costs. The speech aims to instill "a new confidence in Britain," shifting away from past industries like coal mining toward modern manufacturing capabilities.

In addition to maritime projects, Healey will announce plans to revive a trade union-led training scheme, the Union Learning Fund, with £15 million from existing government budgets. This initiative will aim to help workers in England develop new skills, including in areas like advanced manufacturing and adapting to technological changes such as AI, with benefits available to all employees, not just union members.

The proposals have drawn criticism from some quarters. Conservative shadow chancellor Andrew Griffith described the plans as "reheated announcements" lacking clarity on funding, and accused Labour of avoiding difficult financial decisions. Meanwhile, the Confederation of British Industry (CBI) highlighted ongoing economic challenges, including falling activity in retail and services and moderate declines in manufacturing, attributed to rising energy and employment costs, weak demand, and budget uncertainty.

Trade unions have also urged Healey to address the cost of living in his Budget. Sharon Graham, general secretary of the Unite union, called for measures such as unfreezing income tax thresholds to increase disposable income for workers.