Burnham Signals Shift on North Sea Drilling Amidst Policy Blitz

The administration's new policy measures include plans to bring water and energy companies under public control.

A fresh council house-building program also drives the incoming administration's agenda, marking a comprehensive policy push.

Allies of Burnham state he plans a “dynamic” start to his premiership, with an announcement regarding oil and gas drilling potentially made as early as Monday.

This move would shift from Labour’s 2024 manifesto, which pledged against issuing new drilling licences.

The Labour Party's 2024 manifesto previously pledged against issuing new oil and gas licenses, though it committed to honoring existing ones.

This proposed shift departs from that earlier stance.

Regulators approved the Rosebank and Jackdaw oil fields in Scotland in 2022 and 2023, allowing for extraction.

However, a legal challenge in January 2025 overturned these approvals, ruling a previous consent decision unlawful and ordering its reconsideration.

This legal intervention left the licensing process in limbo; Burnham's new policy now appears poised to restart it.

Historically, energy policy has often become a battleground between environmental commitments and economic realities.

The 1970s saw the initial development of North Sea oil and gas, transforming Britain's energy landscape and creating thousands of jobs.

Now, the debate centers on balancing the transition to renewables with immediate energy security and economic stability.

Energy Secretary Ed Miliband has strongly supported Labour’s manifesto commitment on the North Sea, complicating Burnham's potential decision.

Westminster speculation suggests Miliband is a frontrunner for Chancellor, though reports also indicate Home Secretary Shabana Mahmood may be in line for the crucial role.

Energy industry leaders and trade union bosses published an open letter to Labour MPs, calling for support of North Sea oil and gas to reduce reliance on fossil fuel imports from “volatile regions” and make it a “more responsible choice for the climate.”

Opponents of further drilling, including 19 different groups like Oxfam and Greenpeace, wrote to the incoming Prime Minister expressing alarm at reports of new drilling licences.

These groups state extra production would make no difference to energy bills and would be more expensive to extract.

Adrian Ramsay, Green MP, stated approving new oil and gas drilling is the wrong response to climate crises and will do nothing to bring down energy bills.

Amy Cameron of Greenpeace UK called allowing new drilling “a massive own goal” while the UK was “literally on fire,” emphasizing that phasing out fossil fuels offers the only chance for a future with bearable temperatures.

The UK exports most of the oil it produces from the North Sea, leading opponents to argue there is no guarantee additional North Sea oil will be used domestically.

The issue has split unions, with Sharon Graham of Unite backing new drilling, while Unison has called for no more drilling.

Many Labour figures advocate for expanding renewable energy, stating it will reduce climate change impacts and guarantee energy security.

They point to the long-term benefits of investments in wind and solar, positioning them as crucial for Britain's future.

Others, urging a more liberal approach to energy, emphasize the need for the transition away from oil and gas to protect jobs and manage energy bill costs.

This internal tension shows the complex pressures Burnham faces from environmental groups, industry, and the public.

The economic landscape also matters, with Reform holding strong support in traditional Labour heartlands, including the Northern Red Wall and Wales.

These regions often rely on industrial employment, making energy policy decisions directly impact local economies and voter sentiment.

Burnham is also said to be considering capping bus fares at £2 across the country, aiming to make a “tangible” change to people's lives.

Conservative leader Kemi Badenoch, who previously supported new drilling, stated Burnham's comments so far are “airy-fairy stuff” and called him “a people pleaser” rather than someone who would make “tough decisions.”

Polling commissioned by Offshore Energies UK (OEUK) on public opinion regarding North Sea drilling indicates a complex landscape of public and political pressure.

The Reform party and the Conservatives have pushed the government to approve new oil and gas licences, a stance that reportedly helped the Conservative party win its first parliamentary by-election in Scotland in almost 50 years last month.

Burnham committed to Labour's manifesto pledge to keep the triple lock until the end of the current parliament during a Reddit Q&A, despite advisers reportedly criticizing the policy.