Andy Burnham will announce plans for new oil and gas drilling in the North Sea when he becomes prime minister on Monday, the 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 new oil and gas plans are not clear, the North Sea row has been longstanding, and Sir Keir Starmer has 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.
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”.
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.
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 on Monday.
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.