In his first speech as chancellor at Labour’s annual conference in Liverpool, John Healey outlined a vision to reindustrialise the United Kingdom while seeking to reassure markets about the government’s commitment to fiscal discipline. Healey emphasized that he and the prime minister were aligned in their determination to meet established fiscal rules and described welfare reform as an “economic must.”
The chancellor announced a new £100 million fund aimed at empowering local mayors to increase apprenticeships, alongside highlighting a £300 million commitment by Rolls-Royce to upgrade its UK manufacturing and engineering sites. This investment, spanning facilities in Derby, Bristol, Glasgow, and Rotherham, was presented by Rolls-Royce’s chief executive, Tufan Erginbilgic, as a statement of intent to grow advanced manufacturing in the country. Healey also reaffirmed Labour’s support for British shipbuilding, including a £6 billion investment plan.
Business leaders and organisations attending the conference expressed a mixture of cautious optimism and scepticism. Shevaun Haviland, director-general of the British Chambers of Commerce, welcomed the chancellor’s recognition of business’s role in wealth creation and his pledge to use public procurement to support regional growth. However, she warned that the plan’s success would depend on reducing the escalating everyday costs faced by businesses, such as employment expenses, energy bills, and business rates. Haviland also stressed the importance of ensuring that smaller firms can compete for contracts and that promised projects are delivered promptly.
Stephen Phipson, chief executive of Make UK, echoed support for the government’s focus on advanced manufacturing sectors—highlighting Britain’s strengths in aerospace, defence, and renewable technologies—but stressed that these commitments must be backed by tangible actions, particularly in light of ongoing high energy costs and regulatory challenges. He noted that warm rhetoric would hold little value without swift implementation of budget measures and Industrial Strategy goals.
The broader vision of a renewed industrial era for Britain met with scepticism from some quarters. Liam Sides, director at Oxford Economics, questioned the feasibility of industrial resurgence amid the constraints of high energy costs and trade barriers. Tina McKenzie, national chairwoman of the Federation of Small Businesses, urged the government to follow up its positive tone with concrete reforms supporting small businesses, including tax reliefs, faster implementation of late payment regulations, and reconsideration of proposed expansions in Companies House regulations.
Jonathan Reynolds, the business and trade secretary, highlighted additional infrastructure priorities, including the need for a third runway at Heathrow to facilitate global trade and regional economic growth. He also acknowledged public frustrations with water companies while underscoring the role of private capital in driving necessary transformation.
Healey’s speech and subsequent engagements, including a reception hosted by the Confederation of British Industry (CBI), reinforced his message of partnership with business and a commitment to cut red tape where possible. While the government aims to maintain fiscal discipline, business leaders await forthcoming budgetary announcements to assess the government’s capacity to alleviate cost pressures and accelerate growth initiatives.