PM promises £5bn uplift, green steel, and ‘defence dividend’ as Labour draws battle lines with Reform and Plaid

KEIR STARMER delivered a speech heavy with symbolism and policy at Welsh Labour’s 2025 conference today—framing his government as the architects of a new era in Wales, while attacking the populist right and Welsh nationalism as threats to the country’s future.

Addressing delegates at Venue Cymru in Llandudno, the Prime Minister promised a “brighter future for Wales”, outlining a programme of investment and reform he said was already reshaping the country less than a year after Labour swept the General Election.

“That’s your victory, Conference,” Starmer told members. “A Wales back in the service of working people. And we’re only just getting started.”

With a confident delivery backed by visually striking footage from the event, Starmer’s speech marks a significant moment for Welsh Labour—not just in rhetoric but in resources.

£5 billion and a “Labour Spending Review”

At the heart of the speech was a commitment to £22.5 billion annually for Wales over the next three years—a significant uplift in block grant funding. Starmer claimed this equates to:

• £5 billion in additional funds,
• 16,500 new jobs,
• Two new Freeports (Celtic Sea and Anglesey),
• Investment zones in Wrexham, Flintshire, Newport, and Cardiff,
• £445 million for railway upgrades, including five new stations,
• £200 million+ annually for local growth funds.

This, Starmer said, was a clear difference from the previous Conservative government:

“A Labour Spending Review, by a Labour Government, making Labour choices.”

In political terms, Starmer is directly contrasting Labour’s fiscal policy with both the austerity of the past and the radical tax-cutting agenda promoted by Reform UK.

Steel, security, and sovereignty

One of the most significant announcements was a firm recommitment to Port Talbot’s green steel transition, including an £80 million transition board and future support through the National Wealth Fund. Starmer contrasted this with Nigel Farage’s recent visit to the site, accusing him of:

“Pretending he’s got a plan to reopen a blast furnace… He’s got no idea what he’s talking about.”

He warned that Reform’s proposals would cancel the electric arc furnace project due to begin within weeks and “throw away 5,000 jobs.”

Alongside green steel, Starmer introduced the idea of a “defence dividend” for Wales. He pledged:

• Investment in 6,000 existing defence jobs in Wales,
• Skilled job creation through technology upgrades,
• The largest military pay rise in 20 years,
• Upgrades to 800 military homes,
• Veterans to be given priority for social housing.

This forms part of a broader strategic message: Labour can deliver security—military, economic and social—where others cannot.

Welfare, work, and difficult choices

Starmer also addressed the UK’s welfare system, calling it “broken” and “failing people every day.” He rejected Conservative-style cuts but promised reform that encourages people into work:

“We cannot take away the safety net that vulnerable people rely on – and we won’t. But we also can’t let it become a snare.”

He outlined:

• Millions in mental health support,
• NHS reform to tackle waiting lists,
• Council house-building programmes,
• Enhanced worker rights, including the end of fire-and-rehire.

This part of the speech sought to reclaim the narrative on welfare and productivity—long a political weakness for Labour—by offering a moral case for reform alongside fairness.

Fighting Reform and Plaid: “Backwards or forwards?”

Starmer reserved some of his sharpest words for Nigel Farage and Reform UK, mocking the party’s economic plans and casting Farage as a self-serving populist:

“A wolf in Wall Street clothing… Reform doesn’t create jobs. They throw them away.”

He warned of a “backroom stitch-up” between Reform, the Conservatives and Plaid Cymru that could plunge Wales back into “chaos and division,” referencing Plaid’s commitment to independence without a roadmap to reunify Wales economically or socially.

This sets up the battleground for 2026’s Senedd election: Labour will frame itself as the only party with national competence, moral clarity, and local delivery.

Praise for Eluned Morgan and post-industrial justice

Starmer praised First Minister Eluned Morgan, calling her “the best person to lead Wales into the future,” and highlighted her lobbying success in securing £118 million for coal tip safety and a fairer mineworkers’ pension scheme.

“We’re doing right by mining communities,” he said. “We’ve righted the historic injustice of mineworkers’ pensions.”

This appeal to Labour’s traditional base—post-industrial, working-class voters in south and north Wales—aims to reconnect with communities that drifted during the Brexit years.

Analysis: Why this speech matters

Starmer’s address was not just a laundry list of policy. It was a clear electoral pitch to:

• Disaffected former Labour voters,
• Trade unionists,
• Younger progressives,
• And those fearful of Reform’s rise.

The tone was firm but measured. His attack lines on Farage and Plaid were sharper than usual, signalling that Labour sees a real threat from both directions—nationalism and populism. But he balanced that with optimistic language about jobs, green energy, and opportunity.

Crucially, the message to Wales was not “we hear you”—a common Labour refrain in the past—but “we’ve already delivered, and we will deliver more.”