Former Prime Minister Tony Blair has issued a warning to Andy Burnham, who is slated to replace Keir Starmer as Prime Minister next week, urging him to reconsider Labour's Net Zero agenda, which Blair argues is penalizing British businesses. Blair stated that while he supports the ambition of reaching Net Zero over time, the current policies are damaging the country.
Blair made these remarks at the Tony Blair Institute's summer drinks reception in London, emphasizing that "We're penalizing our own businesses at the moment with this, and we can't afford to do that." He insisted that the future lies in renewables and clean energy but cautioned against the current approach to Net Zero.
Simultaneously, reports suggest that Energy Secretary Ed Miliband is considering approving the Jackdaw gas field in the North Sea. This potential move is seen as a way for Miliband to demonstrate a more moderate stance on fossil fuels, aiming to quell concerns about his potential appointment as Chancellor under Burnham. Sources indicate Miliband has privately signaled willingness to approve the field, but a formal decision awaits the conclusion of a public consultation on August 10, to avoid the risk of a judicial review. An industry source told The Telegraph that "They want to do it. Ed Miliband sees it as a way of showing willing to the City but they are likely to follow the law."
Sharon Graham, general secretary of Unite, has previously warned Burnham against appointing Miliband as Chancellor, branding his past ban on new oil and gas exploration in the North Sea as an "act of self-harm." Furthermore, senior officials from Donald Trump's administration have reportedly privately expressed concerns to Labour figures about Miliband's stance on North Sea drilling.
The North Sea Transition Authority is currently reviewing a revised application for the Jackdaw field, as well as the Rosebank field. Initial approvals for both sites, granted by the previous Conservative government, were withdrawn after a court ruled they were unlawfully given. This has necessitated new applications, with the final decision resting with the Energy Secretary should the NSTA provide its approval. Neil McCulloch, the head of Adura, the company behind Jackdaw, has warned that Britain could face fuel shortages this winter without the field's approval.
A spokesperson for the Department for Energy Security and Net Zero stated that their priority is a "fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives our clean energy future of energy security, lower bills, and good long-term jobs." The statement added that "The UK has diverse and resilient energy supply and gas will continue to play a key role as we transition to more secure, clean homegrown energy."