What We Know About Healey's UK Shipbuilding Plans at Labour Conference

Chancellor John Healey will use his first Labour conference speech as chancellor, delivered Monday in Liverpool, to announce new government orders for Royal Navy shipyards as part of what he calls a "new age of industrialisation" for Britain, according to BBC News.

What is Healey announcing at Labour's conference?

Healey will tell delegates that "our coal mines are not coming back," but that Labour intends to remake Britain's industrial history "for the modern age" by backing advanced manufacturing, the BBC reports. The centerpiece is a shipbuilding package: three new floating docks for HM Naval Base Clyde at Faslane and a new maritime research vessel. "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 said, per the BBC.

What is the £15 billion shipyard upgrade program?

The floating docks are part of a wider £15bn upgrade program for the Royal Navy's shipyards, according to the BBC. Plans for the docks were first set out in 2023, and they are expected to enter service in the early 2030s.

What will the three new floating docks at Faslane do?

The docks will be built in the UK rather than put out to international tender, the BBC reports, and are designed to upgrade Faslane's facilities for the next generation of British submarines.

What is the new maritime research vessel for?

First Secretary of State Louise Haigh said Sunday the government will commission a new marine research vessel as part of what she called a "new era of reindustrialisation," according to the BBC. The chancellor is expected to announce £115m in funding for the ship, which is also set to enter service in the early 2030s.

How have critics reacted to the plans?

Shadow Chancellor Andrew Griffith called the package "reheated announcements" with "no clarity on where the money is coming from," per the BBC, adding: "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."

Charlotte Brumpton-Childs, national secretary of the GMB union, described the move as a "massive boost" for UK shipbuilding, telling the BBC: "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."

A CBI survey due out Monday will show falling economic activity across retail and services in the three months to September, with manufacturing declining more moderately, the BBC reports. CBI deputy chief economist Alpesh Paleja said rising energy and employment costs are weighing on firms.

What to watch next

• Whether Healey's Budget, due within a month, includes spending cuts or tax rises to address government borrowing costs, a topic the BBC says he is not expected to address directly in Monday's speech.
• Prime Minister Andy Burnham's own conference address Tuesday, where reindustrialisation themes are expected to continue, per the BBC.
• Whether the CBI's Monday survey data on manufacturing and services activity shapes the Budget debate.
• Progress updates on the Faslane floating docks and research vessel as they move toward early-2030s service dates.