Andy Burnham, the incoming UK prime minister, is expected to announce accelerated development of existing oil and gas drilling projects in the North Sea as part of a shift in government energy policy. While he is projected to maintain Labour’s manifesto commitment not to issue new exploration licences in 2024, sources indicate a push to fast-track previously approved but undeveloped licenses.
The move signals a departure from the previous administration’s more cautious stance on North Sea fossil fuel production, drawing mixed reactions within the Labour Party and beyond. Ed Miliband, the outgoing Energy Secretary and a vocal advocate for the party’s net-zero targets, reportedly opposed efforts to expand drilling, including a proposal to finance defense spending through increased revenue from North Sea oil. That proposal, supported by Chancellor Rachel Reeves and presented to Labour leader Sir Keir Starmer, was ultimately blocked by Miliband’s resistance and did not gain Starmer’s endorsement.
Legal challenges continue to affect key projects in the North Sea. Approvals for the Jackdaw gas field, operated by Shell and located about 150 miles east of Aberdeen, and the Rosebank oil and gas field north-west of Shetland, managed by Adura, were overturned in 2025 after Greenpeace mounted a successful legal challenge. Consequently, Burnham is unlikely to announce outright approval for these developments, and the responsibility will fall to his incoming energy secretary, who has not yet been named.
Industry stakeholders and unions have called on Burnham to support the sector, emphasizing the role of North Sea production in sustaining jobs and contributing to the economy. A joint letter from the oil and gas industry and trade unions urged the prime minister to reaffirm the UK’s commitment to domestic energy production, suggesting such a stance would signal broader industrial and manufacturing confidence.
The announcement arrives amid ongoing debate over the balance between energy security, climate commitments, and economic considerations. Critics from the Green Party, including leader Zack Polanski and MP Adrian Ramsay, condemned any expansion of fossil fuel drilling as counterproductive to addressing the climate crisis and reducing energy prices. The Fire Brigades Union also urged rejection of projects like Rosebank, warning of the growing incidence of climate-related emergencies.
Burnham’s energy policy is expected to be a central feature of his first speech as prime minister, marking a notable change in direction from his predecessor and sparking discussion among political and environmental groups alike. Some Labour MPs, particularly those representing regions affected by industrial decline, are anticipated to support a more pragmatic approach to North Sea resources, reflecting their constituencies' economic interests.
Meanwhile, Burnham faces criticism over plans reportedly under consideration to dismantle the Department for Science, Innovation and Technology, drawing concern from tech industry leaders and advisers who warn this could undermine the UK’s competitive edge in technology and innovation.
This policy shift emerges as Burnham seeks to address long-standing regional economic disparities, drawing on his experience representing Makerfield, a constituency with a history of industrial transformation. Whether these measures will reconcile the competing demands of economic growth, energy affordability, and environmental targets remains a key question as his government takes shape.