Burnham to announce plans for new North Sea oil and gas drilling

Andy Burnham will announce plans for new oil and gas drilling in the North Sea when he becomes prime minister, the BBC has been told.

The Labour Party’s 2024 manifesto – which the new leader said he would follow – had pledged to not issue new licences but to honour existing ones.

At the heart of the debate are two oil and gas fields in Scotland – Rosebank and Jackdaw – which regulators approved in 2022 and 2023 under the then Conservative government, but were overturned in 2025 after a legal challenge.

The announcement will form part of a flurry of measures from Burnham, including plans to take water and energy companies under public control and a new council house-building programme.

He is also expected to outline new measures that will give “people breathing space on the cost of living” and intends to make a “dynamic start… focused on delivering tangible change to people’s lives as soon as possible”.

While details of the oil and gas plans are not clear, the incoming prime minister is expected to uphold the manifesto commitment. One source said Burnham might pitch this as a significant change of direction but said any overt support for completely new licences is not on the cards.

The ongoing legal processes around Rosebank and Jackdaw mean Burnham will also not be able to explicitly announce their approval, but he will likely nod to it in his first speech as prime minister on Monday. This decision will instead effectively fall to the new, unannounced energy secretary.

But the Labour leader could pledge to speed up existing plans to drill more in the North Sea. Many oil and gas licences already approved in recent years remain largely undeveloped due to a variety of reasons.

Sir Keir Starmer had said these gas and oil fields could be further explored, but some in the Labour Party have been frustrated that it has not happened more quickly.

The North Sea row has been longstanding, and Sir Keir has faced criticism for his opposition to new drilling licences.

He argued that new licences did not translate into cheaper bills for consumers and said it was more important to transition to renewable sources for secure energy supplies in the future.

The Conservatives and Reform UK pressured the outgoing prime minister to approve more drilling and said it is “reckless” that the country is not making use of its own resources at a time when the Iran war has increased energy prices.

Sir Keir’s approach was also disparaged by US President Donald Trump who has made repeated calls to “open North Sea oil” and said in a social media post prior to the prime minister’s resignation that he had “failed badly” on energy policy.

From within his own party, Sir Keir saw the debate become increasingly divisive as Labour figures questioned the party’s future direction over energy policy.

Some Labour MPs have urged the government to take a more liberal approach, warning that the transition away from oil and gas must protect jobs and the cost of energy bills.

But others have backed the government’s existing approach, arguing that expanding renewable energy is key to improving energy security and reducing the impact on climate change.

Current Energy Secretary Ed Miliband – who is likely to get a senior cabinet role under Burnham – has been a staunch supporter of Labour’s manifesto position, and previously described the licence issued to Rosebank as “climate vandalism”.

Responding to news of the plans, backbench Labour MP Rachel Maskell said she felt uneasy about more North Sea drilling and said at a time when the UK was experiencing heatwaves and wildfires it was more important than ever to ” follow the climate science because we have got a climate emergency”.

“The climate science is really clear we cannot continue to use carbon based fuels,” she added.

Earlier this week, before the leadership nominations deadline, Burnham was issued with a letter from the oil and gas industry and trade unions calling on him – and all other Labour MPs – to “back North Sea oil and gas”.

It stated that 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 added.

But the suggestion of new plans has already drawn criticism from the Green Party, with MP Adrian Ramsay calling approval of new drilling “the wrong response” and “will do nothing to bring down bills”.

“Andy Burnham says he takes the climate and nature crises seriously, but words are no substitute for action,” he said.

“The science is clear: if we are serious about limiting climate breakdown, we cannot keep opening up new fossil fuel projects,” he added.

Burnham, who returned to Parliament a month ago in a by-election, emerged as the sole leadership candidate after being backed by 379 Labour MPs, as well as all 11 trade unions affiliated to the party, earlier this week.

The new Labour leader has said he is finalising his cabinet before he takes over from Sir Keir.

There has been growing speculation over who will take the top jobs around Burnham, with Miliband and Shabana Mahmood thought to be in the running to replace Rachel Reeves as chancellor.

Asked why he had not announced his top team, the new Labour leader said on Friday: “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 since receiving the party backing, Burnham promised he has “a plan” and vowed to “bring back hope” under his leadership.

The address also offered the first glimpse of Burnham’s policy agenda – which is said to include new council homes, reinvigorated high streets and improvements to education.

The former mayor of Greater Manchester has also previously outlined his vision for reforms to social care, greater public control of water and energy firms and the devolution of power away from Whitehall.