Andy Burnham to announce new North Sea oil and gas drilling to prove 'pro-business' credentials - in blow to 'Red Ed' Miliband's Net Zero agenda

By GABRIEL MILLARD-CLOTHIER, POLITICAL REPORTER and BRENDAN CARLIN Published: 22:00, 18 July 2026 | Updated: 22:37, 18 July 2026 Andy Burnham is poised to announce plans for new oil and gas drilling in the North Sea. The incoming Prime Minister is understood to be considering opening up the Scottish oil and gas fields, Jackdaw and Rosebank. Regulators initially approved oil exploration at the two locations in 2022 and 2023 under the then-Tory government, but were overturned in 2025 after a legal challenge. Because of this, supporters say the decision would not technically break Labour’s manifesto pledge not to issue new licences. As well as boosting the economy, the move is likely to please the unions who fund the Labour Party – many of whom have made clear their displeasure at attempts to block new exploration over worries about job cuts. While Mr Burnham is said to hope his announcement sends a signal he plans to make good on his pledge to be ‘pro-business’, it is a slap in the face for Ed Miliband – who has long resisted the move despite mounting public pressure. It will also enrage other MPs on Mr Burnham’s Left who want to prioritise Net Zero. In a further blow to Mr Miliband, insiders expect the new PM to wrest control of North Sea oil drilling away from him altogether. Andy Burnham is set to allow new North Sea oil and gas drilling to prove his 'pro-business' credentials Ed Miliband, the Energy Secretary and a frontrunner to be Mr Burnham's Chancellor, has been opposed to new drilling licences Sources say his new Business Secretary, tipped to be Jonathan Reynolds, will run Britain’s energy policy instead as part of a beefed up ‘Ministry for Industry’. Managing his unruly MPs, including ‘Red Ed’, will be one of Mr Burnham’s biggest challenges. But this plan was already welcomed by some of them. Last night, Labour MP Al Carns hailed the move as ‘absolutely the right call’, adding that using more home-produced energy ‘does change who gets the jobs [and] who gets the tax revenues to fund our public services’. And Tory leader Kemi Badenoch last night told The Mail on Sunday: ‘Burnham shouldn’t stop here. He should end the destructive ban on new licenses, drop the Energy Profits Levy and adopt our plan to Get Britain Drilling.’