In his first Labour Party conference speech as Chancellor, John Healey promised “a new age of industrialisation” with greater investment in apprenticeships and defence spending to stimulate manufacturing growth.
Healey’s address contained a combination of hope and fiscal reality as he outlined plans to create jobs and industrialise Britain. This includes £6 billion in contracts for British shipyards intended to create manufacturing jobs in the UK. Further demonstrating industrial growth, Rolls-Royce will invest £300 million in British factories in Derby, Bristol, Glasgow and Rotherham.
The Chancellor also announced measures “to get Britain working again”, including £100 million to fund a new apprenticeships scheme and the “rebirth” of the Union Learning Fund, a trade union-run programme for upskilling workers.
Healey said that one particular area of focus of the learning fund would be AI, which he described as “the greatest innovation of our time” and one which British workers must learn to harness.
While the Chancellor’s optimism is certainly welcome at this time, it leaves plenty of room for scrutiny of how these commitments will be put into practice, particularly in light of the fiscal restraints he highlighted: “the money New Labour had in the ’90s is simply not there now.”
Paraic O’Lochlainn, VP, eMaint, a Fluke Brand, commented: “The Chancellor is right that growth does not simply happen; it requires sustained investment in the industries, skills, and infrastructure that will drive it. His ambition to usher in a new age of industrialisation is welcome, but its success will depend on whether manufacturers receive the practical support needed to turn that vision into growth.
“The £100 million investment in apprenticeships is a positive step towards giving more young people a route into skilled employment. However, the challenge remains not only to create schemes, but to ensure they are accessible, aligned with the skills employers need, and capable of reaching young people who might otherwise be left behind.
“Bringing back the Union Learning Fund could also help existing workers adapt as automation and AI reshape industrial roles. However, education providers, businesses, and government must collaborate more closely so that training keeps pace with technological change.
“Britain’s next generation should see manufacturing as a modern, rewarding career offering the opportunity to work with advanced technologies. If the government can translate today’s commitments into clear pathways for young people and effective support for employers, it can begin to build the workforce needed to make its industrial ambitions a reality.”
Make UK Chief Executive Stephen Phipson said: “The Chancellor made some welcome announcements such as the investment from Rolls-Royce that will be a boost for those local communities. He is also right to point to advanced manufacturing as the future. We are world-leading in advanced materials, aerospace, defence technologies and, increasingly, renewable technologies.
“Our members are generally positive about this government’s commitment to reindustrialisation. They are ready to get on with the job and make the investments that will support the government’s agenda.
“However, they are still grappling with crippling energy costs, costly new employment regulation and sky-high business rates.
“The government’s warm words will mean nothing to our members if they are not matched by action at the Budget and faster delivery of the Industrial Strategy.”
The industry now waits to see how these commitments will be reflected in the budget next month. One thing we can be certain of: difficult decisions on tax and spending lie ahead.
