Andy Burnham will announce plans for new oil and gas drilling in the North Sea Oil and Gas Drilling when he becomes prime minister on Monday, the BBC has been told. The move marks a significant shift from the position Labour set out in its 2024 general election manifesto, which pledged not to issue new licences while honouring those already in place.
The announcement will form part of a broader package of measures from Burnham on his first day in office, including plans to bring water and energy companies under public control and launch a new council house-building programme.
Rosebank and Jackdaw at the Heart of the Debate
At the centre of the North Sea dispute are two oil and gas fields in Scotland, Rosebank and Jackdaw, which regulators approved in 2022 and 2023 under the then Conservative government. Both approvals were overturned in 2025 following a legal challenge, leaving their future in limbo and intensifying pressure on Labour to clarify its position on domestic energy production.
The precise details of Burnham's plans have not yet been made public, but the announcement is expected to address the longstanding row directly, signalling a change in direction from the approach pursued by outgoing prime minister Sir Keir Starmer.
Starmer's Position Drew Criticism From All Sides
Sir Keir argued that issuing new licences would not translate into cheaper bills for consumers, and maintained that transitioning to renewable energy sources offered a more secure long-term energy future. His stance, however, drew sustained criticism from multiple directions throughout his time in office.
The Conservatives and Reform UK pressured Starmer consistently to approve more drilling, arguing it was reckless for the country to leave its own resources untapped at a time when the Iran war had pushed energy prices higher. US President Donald Trump added his voice to those critics, making repeated public calls to open North Sea oil and saying in a social media post before Starmer's resignation that he had failed badly on energy policy.
Within his own party, the debate became increasingly divisive. Some Labour MPs urged the government to take a more liberal approach to North Sea licensing, warning that any transition away from oil and gas must protect jobs and shield consumers from rising energy costs. Others backed the existing manifesto position, arguing that expanding renewable energy was essential to improving energy security and addressing climate change.
Miliband's Position Under Scrutiny
Current Energy Secretary Ed Miliband, a staunch defender of Labour's manifesto commitment on licences, previously described the licence issued to Rosebank as "climate vandalism." He is expected to receive a senior cabinet role under Burnham, though it remains to be seen how his strong public stance on the issue will be reconciled with the new prime minister's plans for the North Sea.
Burnham's announcement will be closely watched for how explicitly it addresses the tension between domestic energy production and the party's broader climate commitments.
Industry and Unions Call on Burnham to Back North Sea
Earlier this week, before the leadership nominations deadline closed, Burnham received a letter from representatives of the oil and gas industry and affiliated trade unions calling on him and all other Labour MPs to back North Sea oil and gas.
The letter made the case for the industry in terms that went beyond economics alone.
"Support for the oil and gas industry is 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."
The letter reflects the political weight the North Sea issue carries in specific parts of the country, particularly in Scotland and the north of England, where the industry supports tens of thousands of jobs and where Labour faces competitive pressure from other parties on economic credibility.
Burnham Consolidates Position as Sole Leadership Candidate
Burnham, who returned to Parliament just a month ago following a by-election victory, cemented his position as the sole Labour leadership candidate after receiving the backing of 379 Labour MPs and all 11 trade unions affiliated to the party. He is expected to take over from Sir Keir on Monday and has said he is finalising his cabinet ahead of that transition.
Speculation over his top team has been growing, with Ed Miliband and Shabana Mahmood thought to be among those in the running to replace Rachel Reeves as chancellor.
Asked on Friday why he had not yet announced his cabinet, Burnham was direct.
"It would be somewhat premature and would, I think, cause complete chaos if you start half a reshuffle before you're in the position."
In his first speech since receiving the party's formal backing, Burnham promised he had a plan and vowed to bring back hope under his leadership. The address offered the clearest glimpse yet of a policy agenda said to include new council homes, reinvigorated high streets and improvements to education.
The former mayor of Greater Manchester has previously outlined his vision for social care reform, greater public control of water and energy firms and a significant devolution of power away from Whitehall. Monday's announcements, beginning with the North Sea, will be the first test of how those ambitions translate into government.