Chancellor John Healey is set to unveil a “new age of industrialisation” for Great Britain as the Labour government seeks to place manufacturing, shipbuilding and strategic industrial capacity at the centre of its economic strategy.
In his inaugural address as Chancellor at the Labour Party conference, Healey will argue that Britain’s industrial future cannot be built by attempting to recreate the industries that once defined its economic landscape, but by transforming their legacy into modern manufacturing capabilities.
“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.”
John Healey
This places industrial policy at the heart of Healey’s economic agenda at a time when the government is seeking to address persistent concerns about weak growth, business costs, investment and Britain’s productive capacity.
The Chancellor’s emphasis on manufacturing also highlights Prime Minister Andy Burnham’s wider pledge to make “reindustrialisation” a central component of the government’s strategy for reviving economic growth.
The approach seeks to link industrial development with national economic resilience, arguing that investment in domestic production can strengthen supply chains, create skilled employment and reduce reliance on overseas capacity in strategically important sectors.
Healey is expected to reinforce that argument through new commitments to Britain’s shipbuilding industry, including a UK-only competitive tender for three new floating docks at HM Naval Base Clyde in Faslane, Scotland.
The project, known as Programme Euston, was initially outlined in 2023 and is intended to modernise facilities at the naval base in preparation for the next generation of British submarines.
The facilities are expected to become operational in the early 2030s and form part of a wider £15 billion modernisation programme for naval yards across the country.
The planned investment illustrates how the government’s industrial strategy is increasingly being connected to defence requirements.
Rather than treating defence expenditure solely as a security issue, the government is presenting investment in shipyards and naval infrastructure as part of a broader economic strategy designed to sustain industrial capabilities and support sectors considered critical to Britain’s future resilience.
Healey, who previously served as Defence Secretary before leaving the role following a disagreement over military expenditure, will also use the conference address to announce £115 million in financial support for a new marine research vessel.
The vessel is expected to enter service in the early 2030s and forms part of the government’s wider push towards what ministers have described as a “new era of reindustrialisation.“
“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.”
John Healey
The investment therefore sits at the intersection of several policy priorities: economic growth, national security, industrial resilience and the development of domestic manufacturing capacity.
Industrial Ambition Meets a Difficult Business Environment
Healey’s industrialisation pledge comes as the Confederation of British Industry (CBI) reports a decline in private-sector activity, highlighting the economic pressures that could complicate the government’s ambitions.
According to a recent survey, private-sector firms experienced declining activity during the three months leading up to September, while businesses expected activity to continue contracting through the remainder of the year.
Alpesh Paleja, CBI Deputy Chief Economist, identified rising energy and staffing costs alongside weak demand as factors continuing to squeeze company profit margins.
“Uncertainty ahead of next month’s Budget is also holding back activity in some sectors. 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.”
Alpesh Paleja
This means that, industrial policy can provide public investment in infrastructure, research, defence facilities and strategic industries, but businesses also depend on predictable costs, consumer demand and confidence in the wider economic environment.
That tension is likely to become increasingly important as the government prepares for next month’s Budget.
The challenge for Labour is therefore not simply to announce large-scale industrial projects, but to demonstrate how those investments will translate into sustained economic activity across the wider economy.
The government’s plans also face political criticism over their funding and the scale of Britain’s defence commitments.
Shadow Chancellor Andrew Griffith questioned whether the latest announcements represented genuinely new investment and challenged the government to explain how the spending would be financed.
“These are more reheated announcements without clarity on where the money is coming from. Additional docks were announced months ago in the defence investment plan, which still has a £4.7 billion black hole.”
Andrew Griffith
His criticism also focused directly on Healey’s previous role as Defence Secretary and his disagreement with the government’s approach to military spending.
According to him, “John Healey resigned warning that Labour’s failure to fund defence was making Britain unsafe. Now that he is Chancellor, he still won’t fund the 3% target he walked out over.”
“Labour are running scared of making the tough choices needed to pay for Britain’s defence. All they can offer is reannounced docks and more hot air from Healey. Only the Conservatives will cut the welfare bill to fund defence.”
Andrew Griffith
Meanwhile, the Chancellor is also under pressure from some of Labour’s trade union backers to do more to tackle the cost of living.
READ ALSO: Tano North MP Urges Diversification Beyond Gold Sector
