Incoming Prime Minister Andy Burnham is reportedly set to announce plans for new oil and gas drilling in the North Sea, a move that signals a potential shift in energy policy and a departure from staunch environmental positions previously advocated by figures within his party. The announcement is anticipated to coincide with his assumption of office on Monday.
This proposed policy change follows significant debate regarding the future of two Scottish oil and gas fields, Rosebank and Jackdaw. Licences for these fields were initially approved in 2022 and 2023, only to be revoked the following year. The development marks a divergence from the stance of Energy Secretary Ed Miliband, who has been a vocal proponent of renewable energy sources and has previously described decisions to grant drilling licenses as "climate vandalism."
The push for new licenses comes amid broader pressures on energy prices, exacerbated by global events such as the conflict between the US and Iran. Political groups, including Reform and the Conservatives, have been advocating for the government to approve new drilling to potentially stabilize energy costs. This proposed action appears to contradict the party's 2024 manifesto, which included a pledge against issuing new oil and gas licenses.
While specific details of Burnham's plans for North Sea exploration remain unclear, his administration is expected to unveil a series of policy announcements next week. Prior to his ascension, trade unions representing the oil and gas sectors reportedly sent a letter to Burnham urging his support for the industry. Any new licenses could indicate a growing policy rift between Burnham and Miliband, who is expected to be offered a cabinet position.
Burnham allies have indicated that final decisions on cabinet appointments are still pending and are scheduled for announcement on Monday. Among other policy declarations expected are plans to nationalize water and energy firms and to launch a significant council house building program. Burnham has pledged to usher in "the most significant change moment in our politics for 40 years," aiming to make tangible improvements to people's lives and address issues in social care, housing, water, and transport.
He is also reportedly considering a nationwide cap on bus fares at £2, a policy he previously implemented in Greater Manchester. Speculation also surrounds the composition of his new government, with figures like Angela Rayner and Louise Haigh expected to receive cabinet roles, while others such as Wes Streeting are anticipated to retain their current top positions. Current Chancellor Rachel Reeves is also expected to remain in government, though potentially in a different capacity.