Wes Streeting, former health secretary and potential contender for Labour leadership, has advocated for the UK government to ease restrictions on North Sea oil and gas drilling as a measure to support the economy and generate additional tax revenue. Speaking in interviews this week, Streeting acknowledged the urgency of addressing climate change through investment in renewable energy but argued that expanding domestic hydrocarbon production could offer fiscal benefits amid current global supply challenges.
Labour introduced a temporary moratorium on new offshore oil and gas licences last year, with plans to make the ban permanent as part of the party’s commitment to achieving net zero emissions. However, rising fuel prices driven by geopolitical tensions, including the conflict in Iran, and concerns over energy security in Europe have prompted some voices within and outside the party to call for a reconsideration of this policy.
Streeting suggested that while increased drilling might not lead to lower energy bills for consumers, it would enhance government revenues through taxation. He emphasized the potential economic advantages, including job preservation in the sector, referencing warnings from the GMB and Unite trade unions about the risks posed by the current drilling restrictions to British employment.
The former health secretary’s position contrasts somewhat with that of current Energy Secretary Ed Miliband, who has resisted pressure to relax the moratorium, asserting that new licences would not reduce consumer energy costs. Streeting anticipated that Miliband might ultimately support additional licences, saying, “When he makes a decision, I’d be surprised if that wasn’t the case.”
Streeting also addressed broader economic policy, expressing openness to reversing the recent increase in employers’ National Insurance contributions—a move introduced earlier this year by Chancellor Rachel Reeves. He proposed exploring ways to incentivize recruitment and retention through targeted tax reductions. However, Pat McFadden, the Work and Pensions Secretary, cautioned against such changes, highlighting the difficult balance required in tax policy to sustain public spending.
The former cabinet member’s remarks followed similar calls from former Prime Minister Sir Tony Blair, who criticized Labour leader Sir Keir Starmer for what he described as a retreat into high-tax, left-wing policies that could hamper Britain’s competitiveness. Streeting echoed Blair’s criticisms, describing the current party leadership as lacking intellectual rigor and warning about an internal culture that risks stifling debate.
Despite these critiques, Streeting signaled collegiality towards other Labour figures, notably Andy Burnham, who is campaigning in the upcoming Makerfield by-election and who supports increased devolution and state intervention. Streeting characterized their relationship as cooperative rather than adversarial.
On foreign policy, Streeting reaffirmed his support for the UK rejoining the European Union in the future, while advocating adherence to Labour’s current manifesto promises regarding Europe in the short term.
The debate within Labour highlights an ongoing tension between climate commitments and pragmatic economic considerations amid a volatile global energy landscape. As the party prepares for potential leadership contests, issues of energy policy and fiscal strategy remain central to the discussion.