
Incoming PM Andy Burnham plans to approve new North Sea drilling at Jackdaw and Rosebank and put Thames Water into special administration, people familiar said. The policy reversal is expected to boost investment in UK offshore fields.
Incoming Prime Minister Andy Burnham is preparing to approve new North Sea oil and gas drilling and take public control of Thames Water within days of taking office, according to people familiar with the matter. The two moves would mark a sharp departure from the outgoing administration of Keir Starmer.
Burnham’s team has asked the civil service to draw up options for announcements that could come as soon as next week, the people said. The energy policy includes signaling support for the Jackdaw gas field and the Rosebank oil field off Scotland. He also plans to support an expansion of tie-backs, which allow additional drilling on or near existing fields. No final decision on the form of the announcement has been made. Burnham is likely to indicate he favors more drilling, the people said. A spokesperson for Burnham declined to comment.
The shift comes as the Iran War pushes countries toward domestic energy sources. Current Energy Secretary Ed Miliband has resisted calls for new drilling licenses, favoring renewables. Pressure came from US President Donald Trump and RenewableUK, a professional association with members from both the traditional energy sector and the newer, cleaner one.
Government officials expect Burnham to back at least the Jackdaw project. Public consultations on Jackdaw and Rosebank have recently launched. Formal approval may not come until those processes finish, a constraint that has also bound Miliband. Previous approvals for the fields were overturned by courts. The ultimate decision will rest with the person Burnham names to replace Miliband, because such project approvals are not a cabinet decision.
One official said approving Jackdaw and Rosebank would not breach Labour’s manifesto pledge to ban new exploration licenses. The licenses were granted under the previous Conservative government.
Burnham’s aides have also tasked the civil service with preparing an announcement on the public control of Thames Water. They have told officials they want to make water a priority. One option being drawn up is putting Thames Water into special administration, a form of temporary nationalization. Some officials working on transition plans see it as likely Burnham will proceed with that outcome for the utility, which supplies 16 million customers in London and the surrounding areas.
New drilling will draw criticism from environmentalists and Labour’s left wing, who argue it undermines net-zero commitments. Burnham has said he will not name his new ministers until he takes office on Monday.
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