Incoming Prime Minister Andy Burnham will announce plans to boost North Sea oil and gas drilling shortly after taking office on Monday, sources have revealed.
The move marks a strategic shift for the Labour leader, who won the party leadership uncontested this week. While Labour’s 2024 manifesto pledged to halt the issuance of entirely new drilling licences, Mr. Burnham is expected to accelerate production at sites that already hold exploration permits.
At the heart of the decision are two major Scottish oil and gas fields—Rosebank and Jackdaw. Their approvals under the previous Conservative government were overturned by a legal challenge in 2025, but the incoming administration is now considering giving the final go-ahead for extraction. Because these fields are already licensed, approving production would not technically breach the party’s manifesto commitments.
A packed first week
The energy announcement will form part of a rapid flurry of policy measures designed to give the public “breathing space on the cost of living.”
Mr. Burnham’s immediate agenda is expected to include:
- Public ownership: Plans to bring water and energy companies back under public control.
- Housing: A new national council house-building programme to target the housing shortage.
- Devolution: Shifting key decision-making powers away from Whitehall to regional authorities.
While some Westminster insiders expected the North Sea announcement in Mr. Burnham’s first official speech on Monday, sources close to the incoming prime minister say the exact details are still being finalised, and the formal approval will likely be left to the new energy secretary.
Internal divisions and global pressure
The debate over domestic fossil fuels remains highly sensitive. The outgoing prime minister, Sir Keir Starmer, faced heavy criticism from the Conservatives, Reform UK, and US President Donald Trump for resisting new drilling during a time of global energy price hikes linked to the war in Iran.
However, the shift in tone has already sparked intense friction within Labour ranks. Outgoing Energy Secretary Ed Miliband, who is tipped for a senior cabinet role under Mr. Burnham, previously labelled the Rosebank licence “climate vandalism”.
Backbench Labour MP Rachael Maskell also voiced deep unease, warning that the UK must “follow the climate science” amid ongoing heatwaves and wildfires. The Green Party’s Adrian Ramsay echoed the criticism, calling any moves to expand drilling “the wrong response” that would do nothing to lower consumer bills.
Conversely, the oil and gas industry, alongside major trade unions, has heavily lobbied the new leader, issuing a joint letter urging him to “back North Sea oil and gas” to protect thousands of industrial jobs and secure national energy supplies.
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