Incoming Prime Minister Andy Burnham is reportedly planning to approve new oil and gas drilling in the North Sea, a decision that would signal his commitment to a pro-business agenda and potentially challenge his party's Net Zero objectives.
The plans are understood to involve opening up the Jackdaw and Rosebank oil and gas fields in Scotland. These fields previously received approval for exploration in 2022 and 2023 under the previous Conservative government but faced a legal challenge that overturned the decisions in 2025. Supporters argue that proceeding with these projects would not violate the Labour Party's manifesto pledge against issuing new licenses, as the initial approvals predate the current administration.
This potential move is also seen as a way to appease trade unions, significant funders of the Labour Party, who have expressed concerns about job losses associated with blocking new exploration projects. It is also expected to align with Burnham's aim to be perceived as 'pro-business' during his premiership.
However, the decision is likely to face opposition from figures within the Labour Party, particularly Energy Secretary Ed Miliband, who has reportedly resisted new drilling licenses. Insiders suggest that Burnham intends to centralize control of North Sea oil drilling policy, possibly shifting it away from Miliband's purview. The role of Business Secretary, which is expected to be filled by Jonathan Reynolds, may oversee Britain's energy policy under a strengthened 'Ministry for Industry'.
Managing internal party dissent, including from those prioritizing Net Zero goals, is anticipated to be a significant challenge for Burnham. Some Labour MPs have already voiced support for the proposed drilling. Labour MP Al Carns described the move as "absolutely the right call," emphasizing the economic benefits and the potential for increased domestic energy production to secure jobs and tax revenues for public services.
Opposition leader Kemi Badenoch of the Conservative Party urged Burnham to go further, advocating for the end of the ban on new licenses, the removal of the Energy Profits Levy, and the adoption of the Conservative plan for increased drilling.
