Andy Burnham is set to trigger a fresh political battle over the future of Britain’s energy sector by announcing plans for new oil and gas drilling in the North Sea when he becomes Prime Minister on Monday.

The incoming Labour leader’s proposed move could mark a significant shift in the Party’s energy policy, as the BBC understands that the plans will be among a series of major policy announcements expected during his first days in office.

Labour’s 2024 manifesto, which Burnham had pledged to follow, promised not to issue new oil and gas licences while honouring existing ones.

At the centre of the controversy are two Scottish oil and gas fields, Rosebank and Jackdaw. Regulators approved the projects in 2022 and 2023 under the then-Conservative government, but the approvals were overturned in 2025 following a legal challenge.

The announcement is expected to form part of a major policy push by Burnham, which will also include plans to bring water and energy companies under public control and launch a new programme for building council homes.

He is also expected to announce measures aimed at giving “people breathing space on the cost of living” and has promised to make a “dynamic start… focused on delivering tangible change to people’s lives as soon as possible”.

Although the details of Burnham’s proposed oil and gas plans remain unclear, the North Sea drilling debate has been a longstanding source of political tension.

Outgoing Prime Minister, Sir Keir Starmer, faced sustained criticism over his opposition to new drilling licences. He argued that issuing new licences would not necessarily lead to lower energy bills for consumers, insisting that Britain’s long-term energy security would be better protected by transitioning to renewable sources.

The Conservatives and Reform U.K. had repeatedly pressured the outgoing Prime Minister to approve more drilling, arguing that it was “reckless” for Britain not to exploit its own resources at a time when the war in Iran had driven up energy prices.

Starmer’s position also drew criticism from United States President, Donald Trump, who repeatedly called for Britain to “open North Sea oil”. In a social media post published before Starmer’s resignation, Trump said the former Prime Minister had “failed badly” on energy policy.

The issue also caused growing divisions within the Labour Party, with some figures questioning the Party’s future direction on energy policy.

Some Labour MPs have called for a more liberal approach, arguing that the transition away from oil and gas must take into account the protection of jobs and the impact of energy costs on households.

Others have defended the government’s existing position, maintaining that expanding renewable energy is crucial to strengthening energy security and tackling climate change.

Current Energy Secretary, Ed Miliband, who is expected to retain a senior cabinet position under Burnham, has been a strong supporter of Labour’s manifesto position. He previously described the licence issued for Rosebank as “climate vandalism”.

Earlier this week, before the deadline for leadership nominations, Burnham received a letter from representatives of the oil and gas industry and trade unions urging him, along with other Labour MPs, to “back North Sea oil and gas”.

The letter said backing the industry would send “a signal that the country remains committed to producing, building and manufacturing”.

“It is a signal that government backs the people and places that have powered this country for generations,” it added.

Burnham, who returned to Parliament a month ago after winning a by-election, emerged as the only candidate in the Labour leadership contest after securing the backing of 379 Labour MPs and all 11 trade unions affiliated with the Party earlier this week.

The new Labour leader has said he is putting the finishing touches to his Cabinet before taking over from Starmer on Monday.

Speculation has intensified over who will receive the most senior positions in his government, with Miliband and Shabana Mahmood reportedly among those being considered to replace Rachel Reeves as Chancellor.

Asked on Friday why he had not yet announced his top team, Burnham said: “It would be somewhat premature and would, I think, cause complete chaos if you start half a reshuffle before you’re in the position.”

Earlier that day, in his first speech after receiving backing from the Party, Burnham said he had “a plan” and promised to “bring back hope” under his leadership.

The speech offered the first clear indication of his policy priorities, which are expected to include building more council homes, reviving high streets and improving education.

The former Mayor of Greater Manchester has also previously set out plans for social care reform, greater public control of water and energy companies, and the transfer of more powers away from Whitehall.

Categories: News, Politics, Energy
Tags: Andy Burnham, North Sea, oil, gas, Labour, Keir Starmer, energy policy, Rosebank, Jackdaw
Sources: BBC Report

— Atinuke Otedola and her Editorial Team