Press Association: Healey pledges ‘new age of industrialisation’ with £6bn shipbuilding plan

John Healey has pledged to lead Britain into a “new age of industrialisation”, announcing £6 billion in government contracts for British shipyards and a £100 million apprenticeship scheme.

The Chancellor made the commitments in his first Labour Party conference speech since taking over at the Treasury. He said the Government would support growth, create jobs and build industrial capability in the UK while maintaining fiscal discipline ahead of his first Budget next month.

Mr Healey confirmed that three new floating docks for HM Naval Base Clyde at Faslane would be procured through a UK-only competition. The docks, part of Programme Euston, are intended to support the next generation of British submarines and are expected to enter service in the early 2030s. The Ministry of Defence has previously said the wider upgrade programme for Royal Navy shipyards is worth £15 billion.

Press Association reported that Scottish Secretary Douglas Alexander described the shipbuilding pledges as a “huge opportunity” for Scottish manufacturing. He said the work could be carried out in Scotland but could not guarantee that it would be, because a procurement process still had to be followed.

One contender is the Methil shipyard in Fife, owned by Spanish state-owned company Navantia. The yard was bought from Harland and Wolff in 2024 in a deal supported by the Scottish and UK governments.

GMB Scotland welcomed the UK-only tender. Robert Deavy, the union’s senior organiser in engineering, said the contract could help create and protect skilled jobs and apprenticeships while supporting local economies.

Mr Healey also announced a new Local Apprenticeship Service, under which mayors will receive £100 million to help young people find apprenticeships. He said teams would act like “football scouts” by linking young people with firms, including those that had not previously offered apprenticeships.

He said the scheme was intended to address the almost one million young people not in employment, education or training, and described welfare reform as both an “economic must” and a “moral duty”.

Rolls-Royce is also set to invest £300 million in factories in Derby, Bristol, Glasgow and Rotherham. Mr Healey said the investment demonstrated “a new confidence in Britain”.

He said the Budget would include fiscal discipline while seeking to give families and businesses “breathing space” and support growth. The Confederation of British Industry said the Chancellor had set out a strong vision, but said the Budget would need to turn the proposals into action by reducing business costs and removing barriers to investment.

The CBI separately reported that private-sector activity had fallen in the three months to September and was expected to continue declining through the rest of the year. Its deputy chief economist, Alpesh Paleja, said rising energy and employment costs, weak demand and uncertainty ahead of the Budget were putting pressure on firms.

Shadow chancellor Andrew Griffith criticised the announcements, saying they lacked clarity over funding. He also argued that the Government had not addressed defence spending, welfare costs or the wider economic outlook.