UK Finance Minister Healey to back defense firms in new reindustrialization push

LIVERPOOL, England — British finance minister John Healey will throw his full support behind firms investing in defense on Monday, as part of what he will describe as a new industrialization drive aimed at spurring the nation’s sluggish economic growth.

In his first speech to the governing Labour Party’s annual conference as finance minister, Healey will seek to flesh out Prime Minister Andy Burnham’s pledge to reindustrialize Britain — a commitment Burnham made when he became the nation’s seventh leader in a decade in July.

Healey, who resigned as defense minister under former Prime Minister Keir Starmer over what he considered inadequate defense spending, will declare a “new age of industrialization.” This will see British firms deliver multi-billion pound defense projects, including three new floating docks for submarines in Clyde, Scotland.

“By backing British shipyards, we are not only boosting national security but also securing resilience in the industries that will drive growth today while building the capabilities the country needs for the future,” Healey said in a statement.

Burnham has pledged to meet a NATO target of increasing the core defense budget to 3.5% of GDP by 2035.

Burnham Eyes Defense-Sector Jobs

The announcement signals what Healey hopes to convey in his speech — that the Burnham government sees the route to boosting growth, reducing unemployment, and lowering the welfare bill as stemming from new jobs created by investments in sectors such as defense.

At a conference aimed at energizing Labour members and lawmakers with a message of hope, the new government also faces the challenge of navigating competing pressures. Burnham has promised to offer the public relief from cost-of-living pressures, but that comes at a cost.

With conflict in the Middle East affecting energy costs and government finances tight ahead of Healey’s first budget on October 28, Britain’s new finance minister has limited room to maneuver.

On defense, his government also must address a £4.7 billion ($6.2 billion) gap in its Defence Investment Plan — a blueprint that some military experts say does not go far enough in meeting Britain’s commitment to increase defense spending.

Healey has not yet specified whether the government will reach defense spending of 3% of GDP by 2030 — a target he wanted but failed to persuade Starmer to adopt, which was part of the reason he resigned as defense minister.

Burnham’s new defense minister, Wes Streeting, said defense would drive Britain’s reindustrialization.

“Defense spending should make Britain stronger in every sense,” Streeting said. “That means backing British by buying British wherever our industry can deliver.”

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