Andy Burnham Labour North Sea Row: New Drilling Plans Spark Party Division

The labour north sea row escalates as Andy Burnham, set to become prime minister on Monday, will announce plans for new oil and gas drilling in the North Sea, the BBC has been told. The move marks a sharp break from the Labour Party's 2024 manifesto, which pledged to not issue new licences but to honour existing ones. Burnham's decision, part of a broader policy blitz aimed at addressing cost-of-living pressures and energy security amid the Iran war, has ignited a fierce debate within Labour and drawn reactions from Conservatives, Reform UK, and US President Donald Trump.

The Rosebank and Jackdaw Fields

At the centre of the controversy are two oil and gas fields in Scotland: Rosebank and Jackdaw. Regulators approved these fields in 2022 and 2023 under the then Conservative government, but they were overturned in 2025 after a legal challenge. The fate of these fields has become a flashpoint within Labour, with some MPs arguing for more drilling to help keep energy bills down, while others insist that increasing renewable energy is the only way to improve energy security.

Burnham's Policy Blitz

The drilling announcement will form part of a flurry of measures from the incoming prime minister. Burnham is also expected to outline plans to take water and energy companies under public control, including Thames Water, and to launch a new council house-building programme. His team has asked the civil service to draw up plans for new energy and water policies that can be revealed as soon as next week, according to people familiar with the matter. Burnham intends to make a "dynamic start... focused on delivering tangible change to people's lives as soon as possible."

He is also expected to outline new measures that will give "people breathing space on the cost of living." As he was crowned the leader of the Labour Party on Friday, Burnham declared that he was "ready to lead" the country and promised to "answer the calls" of the public.

Internal Labour Division

The North Sea row has been longstanding, and Sir Keir Starmer faced criticism for his opposition to drilling. 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. Burnham's announcement signals a pragmatic shift to address immediate economic and energy crises, but it has sparked internal division. Some Labour MPs support drilling for lower bills, while others push for renewables.

External Pressure

The Conservatives and Reform UK pressured the outgoing prime minister to approve more drilling, calling it "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 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."

What Happens on Monday

Andy Burnham will become prime minister after Sir Keir Starmer visits Buckingham Palace to offer his resignation to the King on Monday. He will then see the King to "kiss hands" and be invited to take over as prime minister before getting the chance to set out his vision to the country from Downing Street. He is expected to use the speech to set out plans to give people "breathing space" on the cost of living and highlight his core theme of devolving power from Whitehall to regions across the UK.

Economic and Energy Security Implications

The decision to revive North Sea drilling has significant economic and energy security implications. The UK faces high energy prices exacerbated by the Iran war, and Burnham's move aims to address cost-of-living pressures. However, the long-term impact on the UK's climate commitments and the transition to renewable energy remains uncertain. The controversy also highlights the tension between short-term economic relief and long-term environmental goals.

Conclusion

Andy Burnham's announcement of new North Sea oil and gas drilling represents a significant policy shift for the Labour Party. While details of the new plans are not yet clear, the move has already sparked controversy within the party and drawn external pressure from political opponents and international figures. As Burnham prepares to take office, his focus on delivering tangible change to people's lives will be tested by the complex interplay of energy security, cost of living, and climate commitments.