Andy Burnham expected to announce more North Sea drilling as he replaces Keir Starmer as Prime Minister

By MICHAEL BLACKLEY, SCOTTISH DAILY MAIL POLITICAL EDITOR Published: 20:51, 19 July 2026 | Updated: 20:54, 19 July 2026 The vital North Sea industry has suffered a blow after Labour’s deputy leader downplayed any prospect of Andy Burnham fully ditching the ban on new drilling licences. The Labour leader, who will be confirmed as Prime Minister today, is expected to allow the giant Rosebank and Jackdaw, which were originally approved by the previous Conservative government, to go ahead. But Labour’s deputy leader Lucy Powell yesterday indicated that the decisions will not trigger a wider U-turn on new oil and gas licences and said Mr Burnham would bring in a ‘change of emphasis’ rather than a change of policy. It comes as Donald Trump said people in Aberdeen will be “dancing in the streets” if new fields are opened. But, asked on the BBC’s Sunday with Laura Kuenssberg programme about reports Mr Burnham will allow more drilling in the North Sea, Ms Powell said: ‘I think some of those reports were actually speculation, they weren’t official briefings at all, but Andy has been clear that he stands by the policies in our manifesto in relation to that. ‘We are really clear, we’ve been really clear, that the way to achieve in the long term energy security and lower bills is by ensuring we do have our own home-grown, clean, much cheaper energy but we’ve been absolutely clear that North Sea gas and oil is an important part of that transition, it is an important part of the mix. ‘And I think what Andy is talking about is taking a more pragmatic approach, working with the industry to make sure that it can contribute to that transition and to the mix that is needed over the long term. ‘So let’s see what he’s got to say about that but I don’t think it’s a change of policy, it’s more a change of emphasis.’ Labour’s deputy leader Lucy Powell said Andy Burnham would bring a 'change of emphasis' rather than a change of policy on North Sea drilling In a post on his Truth Social platform yesterday, Mr Trump said: ‘The People of Aberdeen, in Scotland, are dancing in the streets because the new Prime Minister, Andy Burnham, has stated that he will be opening up, all the way, the invaluable North Sea Oil!’ The president, a vocal supporter of fossil fuels, said further drilling in the North Sea would ‘make the United Kingdom, from a Poverty Stricken Disaster, to one of the Richest Countries anywhere in the World’. And in his latest attack on wind power he suggested the UK would ‘move the old and horrible looking windmills, which loom over and destroy the City of Aberdeen’. One-month consultation processes are currently underway on the giant Jackdaw and Rosebank fields. Labour’s manifesto for the last general election ruled out granting new drilling licences because of climate change. But both Rosebank and Jackdaw were granted consent before the general election, only to then face delays due to legal challenges that led to fresh environmental assessments. It is estimated that both the Jackdaw gas field and Rosebank oil field west of Shetland can contribute £28.7 billion to the economy, generate £1.8 billion in tax revenues by the end of this parliament, support 3,500 jobs at peak construction and sustain 880 jobs throughout production. Ms Powell said it is important that the legal processes are allowed to proceed on the two fields before a decision is taken by the Energy Secretary. She said: ‘We’ve been clear, with tie-backs, with other measures, that we want to see North Sea gas and oil continue to thrive, continue to contribute to that energy mix, but resolute in our mission that energy security and lower bills will only come by us not continuing to rely on fossil fuels but building the cheaper renewable energy of the future as well.’ Current Net Zero and Energy Security Secretary Ed Miliband previously described the Rosebank project as ‘climate vandalism’. Douglas Lumsden, Conservative MP for Aberdeen South, said: ‘If Labour don’t lift their ban on new licences and end the energy profits levy, they would betray tens of thousands of Scottish workers in the oil and gas sector. It would also be catastrophic for investor confidence in the North Sea, particularly after a few days in which Labour have been strongly signalling Andy Burnham will change direction on oil and gas. ‘More of Ed Miliband’s eco zealotry will finish Labour in Scotland. ‘The Aberdeen South by-election was a referendum on oil and gas, which showed Labour and the SNP how badly wrong they have both got it. ‘Scots want us to use our own resources and secure our own jobs, instead of importing at a much higher cost from overseas.’ Last week, an Opinium survey found that 71 per cent of respondents across the UK backed domestic production of oil and gas and only eight per cent thought it didn’t matter where it came from, while 49 per cent were in favour compared to 24 per cent opposed to the UK following Norway’s government by allowing new licences rather than continuing the current ban. Tory leader Kemi Badenoch has written to Mr Burnham to urge him to drop the ban on new oil and gas licences. She said: ‘Ed Miliband has been a disaster for Britain: a one man deindustrialisation machine, destroying thousands of jobs which rely on the North Sea. ‘I welcome the media reports that you intend to grant licences for the Rosebank and Jackdaw fields. As I heard in Aberdeen on Thursday, just two pieces of paper stand in the way of Jackdaw and Rosebank which alone could secure £4 billion of tax revenues by 2034. ‘But you must not stop there. You should overturn the destructive ban on new oil and gas licences which amounts to unilateral energy disarmament. Getting Britain drilling will be good for our energy security, good for our national security and good for our financial security.’ Scottish Labour deputy leader Jackie Baillie told BBC Radio Scotland’s The Sunday Show: ‘We set out very clearly in our manifesto two years ago that we would honour any licences that were already consented, and that of course includes Jackdaw and Rosebank. ‘I can’t predict what the new Prime Minister will do, we are just going to have to be patient and wait for that next week, but I think that would be a positive step forward. It is estimated that both the Jackdaw gas field and Rosebank oil field (pictured) west of Shetland can contribute £28.7 billion to the economy ‘The fact that he is already talking about oil and gas, which is so important to Aberdeen and indeed Scotland, is a very positive thing.’ It comes as it emerged yesterday that Andy Burnham is to rack up billions of pounds in new spending commitments in a policy blitz that could include doubling foreign aid, ‘nationalising’ Thames Water and cutting bus fares. The new Prime Minister has drawn up plans for a string of eye-catching announcements in the coming days in a bid to make a favourable first impression with the public after entering Downing Street by stealth. Mr Burnham’s aides did not dispute reports yesterday that he also plans to set a ‘pathway’ for reviving the commitment to spending 0.7 per cent of GDP on foreign aid. The last Conservative government cut it to 0.5 per cent and it is due to fall again to 0.3 per cent to free up cash for defence. Reviving the previous target would cost £11 billion a year. Taking control at Thames Water, meanwhile, is a move which could ultimately cost the taxpayer £10 billion. The debt-ridden utility has been teetering on the brink of collapse for months and ministers recently rejected a takeover plan put forward by the firm’s creditors.