Burnham tipped to announce new North Sea oil drilling plans

Burnham tipped to announce new North Sea oil drilling plansAllies of the new Labour leader have said he intends to make a ‘dynamic’ start to his premiership on Monday when he formally takes over from Sir Keir Starmer

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Andy Burnham will announce plans for fresh oil and gas drilling in the North Sea, it has been reported.

Allies of the new Labour leader have said he intends to make a “dynamic” start to his premiership on Monday when he formally takes over from Sir Keir Starmer.

Labour’s 2024 manifesto, which Mr Burnham has promised to honour, said it would not issue new North Sea licences.

The party argued the oil and gas fields would “not take a penny off bills” or improve energy security while accelerating climate change.

However, the incoming Prime Minister may row back on this when he announces a series of new measures on the economy.

Andy Burnham gives a speech on Gravesend Town Pier, as he makes his first official visit as Leader of the Labour PartyGetty Images

In a speech in Downing Street, he is expected to set out plans to provide “breathing space” on the cost of living and bring economic growth to every part of the UK, but details of his plans remain unclear.

Mr Burnham is said to be “open-minded” about new oil and gas licences.

Senior Green Party figures on Saturday urged the incoming prime minister not to break “one of Labour’s flagship manifesto commitments”.

Green MP Adrian Ramsay said: “Andy Burnham says he takes the climate and nature crises seriously, but words are no substitute for action.

“With heatwaves causing deaths, wildfires and extreme weather across the country, approving new oil and gas drilling is exactly the wrong response and will do nothing to bring down energy bills.”

The past week has seen a significant lobbying effort in favour of new licences, with energy industry leaders and trade union bosses publishing an open letter to Labour MPs calling for them to back North Sea oil and gas.

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They argued this would reduce reliance on fossil fuel imports from “volatile regions” that involved higher emissions, making it a “more responsible choice for the climate”.

Opponents of further drilling say the global oil market means extra production in the North Sea would make no difference to energy bills, while being more expensive to extract.

There is also no guarantee that additional North Sea oil will be used in the UK, which exports most of the oil it already produces.

Arguments over North Sea oil have proved a flashpoint throughout Sir Keir’s premiership, with Conservative backing for more drilling helping the party win its first parliamentary by-election in Scotland for almost 50 years last month.

Support for new drilling could also complicate Mr Burnham’s choice of chancellor, a decision he said on Friday he had not yet made.

One of the leading candidates is thought to be Energy Secretary Ed Miliband, who has been a strong supporter of Labour’s manifesto commitment on the North Sea, while reports suggest Home Secretary Shabana Mahmood may be in line for the crucial role instead.