Incoming UK prime minister expected to announce energy policy shift alongside wider economic reforms
Andy Burnham is expected to announce plans to allow new oil and gas drilling in the North Sea when he officially becomes the United Kingdom’s prime minister on Monday, signalling a potential shift in Labour’s energy policy.
According to reports, the announcement will form part of a broader package of policy reforms that Burnham is expected to unveil during his first days in office. The measures are also expected to include proposals to bring water and energy companies under public ownership and launch a major council house-building programme.
The move marks a notable change from Labour’s 2024 election manifesto, which pledged not to issue new oil and gas licences while honouring those that had already been approved.
At the centre of the debate are the controversial Rosebank and Jackdaw oil fields off Scotland’s coast. Both projects received approval under the previous Conservative government in 2022 and 2023 but were overturned in 2025 following successful legal challenges.
Although full details of Burnham’s proposal have not yet been released, the issue has become one of the most divisive topics within the Labour Party.
Some Labour MPs have argued that the UK should adopt a more balanced approach to the transition away from fossil fuels, warning that protecting jobs in the North Sea industry and keeping energy prices affordable should remain priorities.
Others believe the government should continue focusing on renewable energy, saying expanding clean energy sources is essential for improving energy security and tackling climate change.
Current Energy Secretary Ed Miliband, who is widely expected to hold a senior Cabinet position under Burnham, has consistently opposed new North Sea drilling.
He previously described the approval of the Rosebank project as “climate vandalism” and has strongly supported Labour’s previous commitment to ending new exploration licences.
Earlier this week, Burnham received a joint letter from representatives of the oil and gas industry and trade unions urging him to support continued North Sea production.
The letter argued that backing the industry would demonstrate the government’s commitment to manufacturing, energy production and protecting communities that have depended on the sector for generations.
Supporters say continued investment in domestic oil and gas production could help safeguard employment while the country gradually transitions to cleaner energy sources.
Burnham secured the Labour leadership unopposed after receiving the support of 379 Labour MPs and all 11 trade unions affiliated with the party.
He is expected to announce his Cabinet appointments before formally replacing Sir Keir Starmer as prime minister on Monday.
His decisions during the opening days of his premiership are likely to shape the direction of Labour’s economic, environmental and energy policies for the years ahead.
