Andy Burnham is set to announce new North Sea oil and gas drilling licences after taking office as prime minister, in a move designed to signal his pro-business credentials but which risks a major backlash from environmental campaigners and his own party. The decision, expected to be confirmed shortly after he is installed in Downing Street, would break a central Labour manifesto commitment from 2024 that promised not to issue new exploration licences in the North Sea.
The announcement marks a significant shift in energy policy and a direct challenge to the net-zero agenda championed by his predecessor, Ed Miliband, who had positioned the party as a global leader on climate action. Burnham, who has long sought to present himself as a pragmatic leader focused on economic growth, is expected to argue that new drilling is necessary to ensure energy security and support jobs in the oil and gas sector, particularly in Scotland and the north-east of England.
Labour's 2024 manifesto, which Burnham has repeatedly promised to honour, explicitly stated that the party would not issue new licences for oil and gas exploration in the North Sea, though it pledged to honour existing ones. The reversal has already drawn sharp criticism from environmental groups and some Labour MPs, who accuse Burnham of abandoning the party's climate commitments in pursuit of short-term political advantage. One Labour insider warned that the move could provoke the first serious confrontation between the new prime minister and his own backbenchers.
The decision comes amid a broader debate about the UK's energy strategy, with rising household bills and concerns over energy independence following the war in Ukraine. Supporters of new drilling argue that domestic production reduces reliance on foreign imports and supports thousands of jobs, while critics say it undermines the transition to renewable energy and conflicts with the UK's legally binding climate targets. The North Sea Transition Authority, which oversees licensing, has previously indicated that new fields could still be developed under existing licences, but a new licensing round would signal a clear policy shift.
Burnham's expected announcement follows months of speculation about his intentions. During his leadership campaign, he struck a more cautious tone on energy policy, emphasising the need to balance environmental goals with economic realities. However, the decision to approve new licences represents a clear departure from the position taken by Miliband, who as energy secretary had championed a rapid transition away from fossil fuels. Miliband's allies have expressed dismay at the move, viewing it as a betrayal of the party's green agenda.
The oil and gas industry has welcomed the expected change, arguing that it provides certainty for investors and supports the supply chain. Industry bodies have long called for a new licensing round, warning that a ban would accelerate the decline of the sector and lead to job losses. Trade unions representing offshore workers have also urged the government to support continued exploration, citing the economic importance of the North Sea to communities in Aberdeen and the surrounding region.
Environmental campaigners, however, have condemned the decision as short-sighted and damaging to the UK's international reputation. Greenpeace UK described it as a 'betrayal of the climate' and accused Burnham of putting fossil fuel profits ahead of the planet. Friends of the Earth called on the government to instead focus on accelerating investment in renewable energy, energy efficiency, and home insulation, arguing that these measures would create more jobs and lower bills in the long term.
The political fallout is likely to be significant. Burnham will face questions from his own MPs, many of whom were elected on a manifesto that explicitly ruled out new licences. Some Labour backbenchers have already indicated they will oppose the move, potentially setting up an early test of the new prime minister's authority. The Conservative Party, meanwhile, has criticised Burnham for U-turning on a key promise, accusing him of being unreliable and opportunistic.
The announcement is expected to be part of a broader package of measures aimed at boosting economic growth and investment. Burnham's team has signalled that the new prime minister will prioritise infrastructure projects, housing, and energy security in his early weeks in office. The decision on North Sea drilling is seen as a bellwether for his overall approach: willing to break with party orthodoxy in pursuit of what he considers to be pragmatic, pro-business policies.
As the UK prepares for a new era under Burnham's leadership, the North Sea decision will be closely watched by investors, environmentalists, and political opponents alike. It represents an early and defining choice for a prime minister who has promised to govern differently from his predecessor, but who now faces the challenge of reconciling economic ambition with environmental responsibility.
