BURNHAM EXPECTED TO ALLOW NEW NORTH SEA OIL AND GAS LICENCES

Andy Burnham is expected to relax government restrictions on new oil and gas drilling when he becomes prime minister on Monday, according to reports. The decision would mark a departure from Labour's 2024 manifesto, which pledged to honour existing licences but not issue new ones. Trade unions and some Labour MPs have urged Burnham to support the sector, with union officials telling him that backing new drilling would signal "the country remains committed to producing, building and manufacturing". Burnham's team declined to confirm details on Saturday.

The debate centres on two sites, Rosebank and Jackdaw, off the north-eastern coast of Scotland, where licences were approved under the Conservatives but overturned last year by a Scottish court. The court ruled the government must consider environmental impact before permitting new drilling. The Conservative leader, Kemi Badenoch, has suggested new licences could reduce high energy bills, a claim disputed by climate campaigners. Energy Secretary Ed Miliband, a Burnham ally, previously described the Rosebank licence as "climate vandalism" and some Labour figures favour focusing on renewable energy instead.

Burnham will set out his policy agenda on Monday, including plans for public control of water and energy companies and a major council-house building programme. The Conservatives and Reform UK support new oil and gas licences. According to one report, hundreds of new North Sea licences granted by the Conservatives over 14 years produced just 36 days of gas. Former energy secretary Claire Coutikh admitted in 2023 that new licences "wouldn't necessarily bring energy bills down".