John Healey is set to place Royal Navy upgrades at the heart of his keynote Labour Party conference speech, promising a bold industrial revival for Britain.
The Chancellor will use his address to party activists on Tuesday to confirm a series of major maritime investment commitments backed by public funding.
Three new floating docks will be announced to support British sovereignty, alongside a new marine research vessel backed by a £115m government investment.
Healey confirmed the research vessel will be built “in a British shipyard”, directly linking defence expenditure to domestic industrial output and job creation.
The Chancellor’s economic philosophy draws heavily on his personal background, with Healey saying his politics were “shaped by the industrial heartlands of South Yorkshire”.
He acknowledged that coal mines in the region are “not coming back”, but argued that shipbuilding represents how “Britain’s industrial past is being remade now for the modern world”.
Healey is expected to declare: “This is the new age of industrialisation. A new confidence in Britain.”
The announcements directly connect Healey’s previous experience at the Ministry of Defence with his current responsibilities at the Treasury under Prime Minister Andy Burnham.
Healey had resigned from Sir Keir Starmer’s government after claiming the Treasury was “unwilling” and “unable” to raise defence spending to three per cent of GDP by 2030.
That resignation, delivered before the full publication of the Defence Investment Plan, placed Starmer in a more vulnerable political position and effectively contributed to his departure from Number 10.
Burnham’s government has not yet provided a clear pathway to raise defence spending by approximately £11bn a year to meet the three per cent of GDP target.
Ministers have indicated that a detailed pathway will be set out at next year’s Spending Review, leaving questions around the fiscal timeline unresolved for now.
Healey’s approach of using defence expenditure as a driver of economic growth could prove divisive among economists, who argue its effects on the broader UK economy are smaller than investments in other sectors.
Defence is listed as one of eight sectors the government has identified as having the potential to deliver high growth across the United Kingdom.
Healey said his push to support British shipyards was “boosting national security” while building “resilience in the industries that will drive growth today.”