Andy Burnham signals U-turn on North Sea drilling policy

Prime Minister Andy Burnham has signalled a possible shift in Labour's policy on North Sea oil and gas, admitting that drilling could help ease the cost of living. The comments, reported in the Daily Mail, suggest a break from the party's previous opposition to new licences, which was a key manifesto commitment. Burnham is said to have hinted that, at a time of tight government finances, the North Sea is a resource that cannot be ignored.

The admission comes after years of Labour figures, including former energy secretary Ed Miliband, repeatedly argued that new drilling would not reduce household bills. Miliband, now Foreign Secretary, had said that new licences would not take a single penny off bills. But Burnham's apparent change of heart has been welcomed by some, who point to the potential tax revenue and jobs from further extraction. The Daily Mail reported that the North Sea could bring in around 25 billion pounds in tax and support 3,500 jobs.

The debate is complicated by the distinction between new licences and extensions to existing fields. Labour's manifesto opposed new licences, but the government is now considering approving extensions to two existing fields, which were previously signed off by the Conservatives but challenged in court. Supporters of the move argue that this is not a U-turn, as it does not involve new fields. However, critics say it is effectively the same thing and could open the door to wider drilling.

Public opinion appears to be shifting. A new YouGov poll shows that a majority of the UK public support more drilling in the North Sea. The issue is also being framed around energy security, with some arguing that relying on domestic resources reduces vulnerability to global price shocks. Sky News economics editor Ed Conway visited the Britannia rig, one of the most important gas fields in British history, to examine whether the North Sea really is in terminal decline or whether political and regulatory decisions are accelerating its demise.

During the visit, Conway spoke to a figure who claimed to have advised Keir Starmer to open up the North Sea, saying that stopping new drilling was a reckless promise. The question now is whether the government will allow the North Sea to decline at its current rate or change course. Burnham's comments suggest a possible change in emphasis, but no formal policy announcement has been made. The prime minister will need to balance the economic and security arguments against the party's previous commitments and environmental concerns.

The story has also reignited political tensions within Labour. Some commentators note that Ed Miliband, who was a strong opponent of new drilling, is now Foreign Secretary and may have to defend a policy he once opposed. Others point out that the unions have been pushing for a change in policy, and that an early election could allow the party to rewrite its manifesto. For now, the government appears to be treading carefully, with the focus on extensions to existing fields rather than a wholesale reversal.

Regardless of the political manoeuvring, the underlying issue remains: can the North Sea provide enough oil and gas to make a meaningful difference to energy bills and security? The answer depends on geology, investment, and policy. As Conway's report shows, the infrastructure is still there, but the future of the basin is uncertain. The prime minister's recent comments suggest that the debate is far from over, and that the North Sea may yet play a bigger role in the UK's energy strategy than previously thought.