Enginuity's reflections from Labour Party Conference 2026

After a busy few days in Liverpool for the Labour Party Conference 2026, the Enginuity Policy Team have been digesting what it all means for the engineering and manufacturing sector, and our work. 

1. Reindustrialisation and devolution will be major elements of this new Government’s programme

New Chancellor John Healey promised a “new age of industrialisation” backed by advanced manufacturing to achieve economic renewal. Devolution as a default will help achieve this through a place-based approach – the Prime Minister wants local leaders to decide how to shape good growth in every postcode. 

2. Skills policy is still having its moment in the sun

It’s incredibly positive that the new Prime Minister and much of his Cabinet are placing huge focus on vocational education – this is a massive moment of opportunity to fix the skills landscape. 

The limelight on skills was demonstrated most clearly when Chancellor Healey announced £100m extra for Local Apprenticeship Services led by mayors, confirmed as a major expansion of the existing local apprenticeship brokerage pilots. 

3. Young people need opportunities grounded in labour market need

Many voices across conference called for a stronger focus on demand when developing new vocational education, with significant attention already on supply. Jonathan Brash MP noted how easy it is to introduce new quals without thinking about why –new products must have a clear purpose.

We were glad to see Parliamentarians recognise the role employers have here – Minister Luke Pollard highlighted the importance of looking beyond the big employers and making sure skills investment reaches the whole supply chain. 

4. Devolving skills will bring challenges as well as opportunities

There was plenty of hope about the benefits increased devolution could bring – Minister Jacqui Smith set out that national vocational qualifications could be paired with specific pathways tailored with the local labour market in mind.

The Minister was also honest about the challenges - e.g. how to balance devolution against nationally set priorities, a live issue in gov. Rushanara Ali MP suggested devolution could worsen regional inequalities without accountability from national government. 

5. Balancing reform with simplicity in the skills landscape is vital

There was plenty of welcome recognition that asking employers to do more is only part of the answer. As Sir Charlie Mayfield put it, employer appetite has a “half-life”. If we make it difficult to navigate the system, that appetite won’t last. 

So, what next?

We’ll be engaging with the upcoming Milburn recommendations on NEET young people, developing a clear position on what successful devolution of skills policy could look like, and continuing to ensure employers are at the heart of decision-making.

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