Healey says growth is ‘only answer’ in conference speech

The Labour chancellor promised a new age of British industrialisation, as he outlined the government’s focus on AI, advanced manufacturing and defence ahead of his first budget.

During a 30-minute speech to the Labour Party conference in Liverpool, John Healey pledged £100m to creating new regional apprenticeship schemes as part of a plan to reverse a tough jobs environment for young people on benefits, with more than 750,000 people aged 16-24 currently unemployed in the UK.

Also included was a £6bn investment in naval infrastructure, with three floating docks promised for Faslane in Scotland, and a new marine research vessel set to be delivered by UK companies as part of a fresh government push on directing government spending to UK firms.

“We will use everything we can to create good jobs, and industrialise Britain,” he said.

“And we’ll use the power of public procurement to direct more of the British tax payers money to British business, British jobs and British innovation.”

He also paid tribute to the “fiscal discipline” of his predecessor Rachel Reeves as he pledged to keep control of Britain’s finances, while criticising levels of national debt which he said had been left for his government in 2024, accumulated during “14 years of flat lining tory growth and living standards”.

Healey laid into both the Tories and Reform during a 30-minute speech, during which he referred to Reform leader Nigel Farage as “Liz Truss with a bitcoin account” – as well as doubling down on government plans to redistribute wealth through devolved spending.

“The only long term answer is growth. Good growth in every postcode, a dual mission from the treasury and Number 10 north,” he added.

“London, the powerhouse of Britain’s economy for so long, should not have to shoulder the burden alone. We need growth, generated in more places, wealth created in more places, and I want our government decisions and our policies to bring new levels of confidence, investment and yes, profits in British business.

“Labour isn’t just here to cut the cake in a different way. We have to bake a bigger cake and make sure that it’s fairly shared.”

Advanced manufacturing

Rotherham’s advanced manufacturing park on the site of the former Orgreave pit was singled out as the chancellor announced policies to support modern manufacturing processes, which he said would give Britain a story “for the future, and not the past”.

Rolls Royce expansion programme in Derby also got a mention as a £300m investment for factories in the East Midlands, along with Bristol, Glasgow and Rotherham was unveiled as part of the government’s strategy of working with the private sector to create new industrial jobs.

Healey said he would use the national wealth fund to create 130,000 jobs across the UK by 2030, pulling in private sector investment in AI, tech, defence and clean energy.

“Our coalmines are not coming back, but this is how Britain’s industrial past is being remade now for the modern world. It’s how people are starting to tell each other stories of the future and not the past,” he said.

Apprenticeships

Healey said almost a million young people currently out of employment would become the country’s future workforce, as he announced an expansion of apprenticeships, which he said would be delegated to regional mayors.

Under the scheme, firms will be supported to take on more apprentices as part of a £100m programme of investment in training, which will be funded by DWP savings, according to the treasury.

Defence

A total of £6bn was promised for defence, set to include three new floating dock platforms at Faslane, with a government funded research ship also promised – set to become operational by 2032.

The vessel would lead a new national system for monitoring the UK’s seas, carrying out marine surveys, data and technology in one place, which the government said would help to manage UK fisheries and the marine environment more effectively.

The government says the vessel will be UK built, although no further details have been provided, with the government expecting to engage with the UK shipbuilding sector in the coming months, it says.

AI

Healey said Britain’s workers would “not be left behind” in a forthcoming AI revolution, describing it as the “greatest innovation of our time” – while acknowledging risks associated with the technology.

He said the adoption of artificial intelligence would create a groundswell of world-leading UK tech firms, adding that it would be the driving force with which the country’s future industries could be built.

• John Healey’s first budget as chancellor is due to be announced next month, on 28 October.