Incoming Prime Minister Andy Burnham is reportedly planning to authorize new oil and gas drilling in the North Sea, signaling a pro-business approach early in his premiership. The move is understood to involve opening up the Jackdaw and Rosebank fields, which were previously approved for exploration in 2022 and 2023 by the Conservative government but were later halted by a legal challenge in 2025. Supporters argue this decision would not violate the Labour Party's manifesto pledge against issuing new licenses, as previous approvals exist.
This potential policy shift is seen as a significant development that could impact the United Kingdom's Net Zero targets and potentially cause friction within the Labour Party, particularly with Energy Secretary Ed Miliband, who has reportedly opposed new drilling. Sources suggest that Burnham intends to consolidate control over North Sea oil drilling policy, possibly moving it away from Miliband and into a beefed-up 'Ministry for Industry' under the new Business Secretary, expected to be Jonathan Reynolds.
The decision is also anticipated to please trade unions, many of which have expressed concerns about potential job losses linked to a strict Net Zero agenda and have been critical of efforts to block new exploration. Burnham's supporters believe the announcement will underscore his commitment to a business-friendly economic policy. Some Labour MPs have already voiced support for the move, with Labour MP Alun Cairns hailing it as the "absolutely the right call," emphasizing the benefits of domestic energy production for job creation and public service funding through tax revenues.
Meanwhile, Conservative leader Kemi Badenoch has urged Burnham to go further, advocating for an end to the ban on new licenses, the removal of the Energy Profits Levy, and the adoption of a broader "Get Britain Drilling" plan. The initial approval for exploration at the Jackdaw and Rosebank fields by regulators occurred in 2022 and 2023, respectively, before being overturned in 2025 due to legal challenges.