Prime Minister Andy Burnham will keep Labour’s manifesto ban on new exploration licences in the North Sea, dashing industry hopes for a “drill‑baby‑drill” shift. Deputy leader Lucy Powell confirmed the pledge, saying the government still sees fossil fuels from the basin as part of the energy mix but will not overturn the moratorium.

Industry figures warned that refusing new licences would leave the sector “very unhappy,” while 71 per cent of voters in a recent Opinium poll backed domestic oil and gas production. Burnham plans a visit to Aberdeen to reassure workers and unions, and may ease tax and regulatory burdens such as the windfall levy. He is also expected to stress support for “tiebacks” that allow extra drilling next to existing fields, and to consider softening the windfall levy on producers.

The government must soon decide on the Jackdaw gasfield and Rosebank oilfield off Scotland, which already hold licences. Both projects have been stalled by a court ruling last year, and the previous administration under Sir Keir Starmer had pushed Energy Secretary Ed Miliband to approve them. Officials expect approval of Jackdaw and possibly Rosebank, though no formal confirmation has been given. Campaigners argue that caving to oil‑and‑gas demands would be a “terrible look” for the new administration.