Burnham to announce plans for new North Sea oil and gas drilling

Incoming prime minister Andy Burnham is expected to announce plans for new oil and gas drilling in the North Sea when he takes office on Monday. The move is set to form part of a wider package of policy measures as he prepares to take over from Sir Keir Starmer. The details of the drilling plans have not yet been made clear.

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The announcement comes against the backdrop of a long-running dispute inside Labour over energy policy. The party's 2024 manifesto pledged not to issue new licences, while honouring existing ones. That position has been defended by current Energy Secretary Ed Miliband, who has previously described the licence issued to Rosebank as "climate vandalism".

Two oil fields in Scotland, Rosebank and Jackdaw, sit at the centre of the debate. Regulators approved both projects in 2022 and 2023 under the then Conservative government, but those approvals were overturned in 2025 after a legal challenge. The row has since become increasingly divisive, with some Labour MPs arguing for a more liberal approach to protect jobs and energy bills, while others say the priority should be renewable energy and climate goals.

The issue matters because it cuts across energy security, industrial policy and climate commitments. Supporters of a more permissive approach argue that continued North Sea production can help sustain employment and manufacturing, and signal backing for communities linked to the sector. Opponents say expanding drilling risks undermining the transition away from fossil fuels and could weaken the government's climate credibility.

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Burnham's expected announcement also follows pressure from outside Parliament. Earlier this week, before the leadership nominations deadline, he received a letter from the oil and gas industry and trade unions urging him and other Labour MPs to back North Sea oil and gas. The letter said support for the sector would show that the country remains committed to producing, building and manufacturing, and that government backs the people and places that have powered the country for generations.

Burnham, who returned to Parliament a month ago in a by-election, secured his position as the sole leadership candidate after being backed by 379 Labour MPs and all 11 trade unions affiliated to the party. He is still finalising senior cabinet appointments before formally taking over. What remains unclear is how far the new drilling plans will go, whether they will alter Labour's manifesto position, and how they will be received by party figures, industry groups and climate campaigners in the days ahead.

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