Healey to unveil a new framework for industry

The UK industrial plan is taking shape ahead of the Labour Party conference in Liverpool, with the messages John Healey is expected to deliver. Speaking before his first budget next month, Healey is expected to outline a new industrial drive based on advanced manufacturing, without going into detail on taxes or spending lines.

In his speech, Healey will stress that Britain is not returning to its old industrial model; instead, the country’s manufacturing heritage will be rebuilt around modern technology and high-value sectors. In this approach, public support is expected to focus on areas such as shipyards and advanced production rather than a revival of coal mining.

Orders for domestic shipyards and £115 million for a research vessel

The most concrete part of the plan is three new floating docks designed for HM Royal Naval Base Clyde in Faslane, Scotland. First announced in 2023, the infrastructure is intended to be built in the UK without being put out to international tender, and the facilities are expected to come into service in the early 2030s to support the next generation of British submarines.

  • 3 new floating docks are planned to be built in the UK.
  • The wider modernization programme for Royal Navy dockyards is valued at £15 billion.
  • Funding of £115 million is expected to be set aside for a new marine research vessel.

The government also plans to order a marine research ship. Trade unions argue that the move would provide important support for domestic shipyards and their surrounding communities, while the opposition says the same pledges are being brought back again without any explanation of how they will be funded.

Borrowing pressure and weak demand continue before the budget

Healey’s speech comes at a time when rising public borrowing costs are intensifying pressure for spending cuts or tax rises. Research to be published by the CBI (Confederation of British Industry) shows that economic activity weakened in the three months to September, led by retail and services, while the decline in manufacturing was more limited.

According to the group, rising energy and labour costs, along with weak demand, are squeezing company profit margins, while uncertainty ahead of next month’s budget is leading some sectors to delay investment and hiring decisions. At the same time, the government plans to revive a £15 million Union Learning Fund, to be funded from existing budgets, to help workers in the UK gain new skills, while some trade unions are calling for stronger measures in the budget to address the cost of living.