John Healey adopted an optimistic ‘can-do’ tone as he used his first speech to Labour conference as Chancellor to promise a positive future for young people and new investment in industrialising Britain.
He said the British should be “confident in who we are”, able to compete on the world stage, in life sciences, in defence, tech, financial services and in AI, but it had to be realistic as well as optimistic.
Although there was a 90s revival going on, “the money Labour had in the 90s is simply not there now”, he said.
Mr Healey conceded the public finances were tight but was clearly determined not to repeat the downbeat messages delivered by Sir Keir Starmer and Rachel Reeves after the party’s general election victory two years ago.
He confirmed £6 billion on new shipbuilding and said Rolls-Royce would spend £300m in its plants in Glasgow, Derby, Bristol and Rotherham.
“I want to tell you how we’ll bring back hope,” he told delegates. “How we’ll get Britain growing. With hope for our young people. With good work, good jobs and a new age of industrialisation. Because, Conference, I believe in Britain and we believe in Britain.”
Addressing the growing number of young people classed as NEETS – those not in employment, education or training – he said: “I refuse to write off a million young people like the Tories have done.
“When some people see a million youngsters with no work and no training, they see despair. I see hope.
“I see the future workforce of a reindustrialised Britain. Future business founders. Future union stewards. Future homeowners.
“I see a generation born this century, digital natives, whip smart, questioning, ambitious, brave.
“I see the best asset we have in Britain: in our young people. And I believe this generation has the potential to be a great generation.
“I believe we can help this generation move from Generation Jeopardy to Generation Hope.”
He said a Local Apprenticeships Service would be set up to encourage firms to take on apprentices, funded by £100m of savings in the Department for Work and Pensions.
Criticising what he called the “reckless” actions of previous Conservative governments that “are still causing pain for people today”, he committed Labour to fiscal discipline.
He said the “levels of debt are an assault on our common sense, they are an affront to our values. And that’s why the Prime Minister and I are in lockstep that we will meet the fiscal rules. That we will maintain control of Britain’s finances.”
Rain Newton-Smith, CBI chief executive, said: “The Chancellor’s speech set out a strong vision for how a politics of hope can translate into stronger business confidence and, ultimately, higher living standards.
“His commitment to fiscal discipline and recognition that it is a precondition for sustainable growth should provide reassurance to markets that the government is prepared to take difficult decisions to secure stable public finances.
“Just as important was the recognition that business needs breathing space. Firms cannot invest, hire and grow if rising costs continue to absorb the headroom they need to do so.
“The speech sent many of the right signals. The Budget now needs to turn them into action if we are to fundamentally change firms’ willingness to invest, take a chance on a young person, and scale a business here in the UK.”
Dr Valentin Boboc, senior economist at the Institute of Economic Affairs, said: “Backing British industry and getting more people into work are worthwhile ambitions. But government contracts, subsidies and union-led training schemes are no substitute for creating the conditions in which businesses can invest, innovate and employ.
“The Chancellor should use next month’s Budget to cut taxes, bring down energy costs and remove the barriers holding back investment and growth.”
Energy Secretary makes no mention of Rosebank or Jackdaw
Energy Secretary Miatta Fahnbulleh told conference that Labour was tackling the energy transition and investing in nuclear capacity, but made no mention of the Rosebank (oil) and Jackdaw (gas) fields in the North Sea that are awaiting go ahead.
Ms Fahnbulleh praised the success of publicly-owned Great British Energy that was installing solar panels in schools and hospitals that were helping to cut bills.
“We are also building our nuclear industry, with public ownership at its heart through Great British Energy Nuclear, rolling out a new generation of small modular reactors,” she said.
“And we’ve hit a new record for nuclear jobs, with nearly 100,000 people working across the sector. Just imagine, just imagine where Britain could be today if we had moved faster. If we had invested earlier. If we had taken more control.”
Reynolds to help self-employed
Jonathan Reynolds, the business secretary, has pledged to close “bogus self-employment loopholes” that he said deny workers basic rights.
He told conference that the change would give up to 100,000 more workers access to the national living wage and holiday pay.
Mr Reynolds said it was an issue “which both workers and businesses raise with me repeatedly”. He said loopholes in employment law were :”being used to define workers as self-employed when they are clearly not, denying basic employment rights, undercutting businesses who are doing the right thing and leaving people with the sense that playing by the rules doesn’t pay.
“Everyone can see this isn’t right. It is a fundamental question of fairness. This Labour government will put an end to it. We will close the loophole. We will level the playing field for business.”
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