UK Chancellor John Healey is set to deliver his first conference speech today, outlining plans for a "new age of industrialisation." He will pledge significant support for the shipbuilding industry, including the procurement of three new floating docks for HM Naval Base Clyde (Faslane) through a UK-only competition, known as Programme Euston. These docks are part of a wider $15 billion upgrade program for Royal Navy shipyards and are expected to be in service by the early 2030s. Additionally, Healey will announce $115 million in funding for a new marine research vessel, also slated for completion in the early 2030s.
Healey's speech will also address the issue of youth unemployment, aiming to transform young people from "generation jeopardy to generation hope." He plans to restore the Union Learning Fund, a $15 million-a-year initiative to provide training for workers in union-led workplaces, covering skills from essential English and maths to advanced manufacturing. This comes as the latest figures show approximately 981,000 young people are not in employment, education, or training.
However, the Chancellor's address coincides with a gloomy economic outlook from the Confederation of British Industry (CBI), which reported a decline in private sector activity in the three months leading up to September, with expectations of further decline for the rest of the year. The CBI highlighted rising energy and employment costs, weak demand, and uncertainty surrounding the upcoming Budget as key pressures on profit margins. Opposition Shadow Chancellor Andrew Griffith criticized Healey's announcements as "reheated" and lacking clarity on funding, pointing to an existing $4.7 billion "black hole" in defense investment.
Despite the economic headwinds, the GMB union, representing shipbuilding workers, welcomed the commitment to a UK-only tender for Programme Euston, emphasizing the importance of securing skilled jobs and apprenticeships within the UK. The union noted a shift towards investing in sovereign industrial capability, a change from past practices where large UK contracts were awarded globally.
