Incoming Prime Minister Andy Burnham is poised to authorize new oil and gas drilling in the North Sea, a policy direction that signals a departure from the government's stated net-zero commitments and marks a divergence from Energy Secretary Ed Miliband's advocacy for renewable energy.
Burnham is expected to announce these plans shortly after assuming office on Monday. This potential policy shift follows considerable debate regarding the future of two significant oil and gas fields in Scotland: Rosebank and Jackdaw. Licences for these fields were initially approved in 2022 and 2023, only to be rescinded the following year.
This move contrasts with the stance previously taken by Sir Keir Starmer, who argued that granting new fossil fuel licences would not necessarily lead to lower energy bills for consumers, a claim often made by proponents of such approvals. Ed Miliband, frequently described as a 'net-zero zealot,' has consistently championed renewable energy sources as a means to combat climate change.
However, mounting pressures on global energy prices, exacerbated by international conflicts such as the war between the United States and Iran, have led to increased calls from political groups like Reform and the Conservatives to approve new drilling licenses. Such a decision would run counter to the pledges made in the governing party's 2024 manifesto, which committed to foregoing new oil and gas licenses.
Miliband has previously characterized the decision to grant a licence for the Rosebank field as 'climate vandalism.' While he was once considered a potential candidate for Chancellor under Burnham's premiership, recent discussions have also included Home Secretary Shabana Mahmood for a cabinet role.
Details of Burnham's specific proposals for North Sea oil and gas exploration remain unclear, though it has been indicated that a series of policy announcements are scheduled for the upcoming week. Trade unions representing the oil and gas sectors have formally urged Burnham to support their industry in a letter submitted prior to his assumption of the prime ministership.
Any new licensing decisions could signify a further rift between Burnham and Miliband, who is anticipated to receive a cabinet position. Allies of Burnham have stated that final decisions on cabinet appointments are still pending and are expected on Monday. Among other policy declarations, Burnham is anticipated to outline plans for the nationalization of water and energy firms and to initiate a program for council house construction.
In a speech delivered on Friday, Burnham declared his intention to bring about "the most significant change moment in our politics for 40 years." He also criticized existing political structures for "surrendering control" over essential services such as housing, water, energy, and transport, and expressed a commitment to reforming social care.
Burnham's address on Monday, following his official appointment as Prime Minister, is expected to focus on enacting tangible improvements in people's lives. Measures aimed at addressing the cost of living crisis and tackling social care reform are anticipated. He is also reportedly considering a nationwide cap on bus fares at £2, a policy he previously implemented during his tenure as Mayor of Greater Manchester.
Significant attention is also being paid to the composition of Burnham's new government. It is expected that close allies, including Angela Rayner and Louise Haigh, will be offered cabinet posts, while figures such as Wes Streeting are likely to retain their current high-profile positions. Current Chancellor Rachel Reeves is also expected to remain in a government role, though potentially in a different capacity.