Burnham admits oil drilling CAN ease cost of living: Signalling a break with Ed Miliband's Net Zero, new PM concedes 'Britain can't ignore' resources in North Sea

By JASON GROVES, POLITICAL EDITOR Published: 00:40, 31 July 2026 | Updated: 00:59, 31 July 2026 Andy Burnham was urged last night to 'get Britain drilling' after he admitted that North Sea oil revenues could ease the cost of living. The Prime Minister hinted at a shift in Labour's ideological ban on new drilling, saying that at a time of tight government finances the North Sea was a resource 'we can't ignore'. Experts have predicted that lifting the ban could generate £25billion in extra tax revenues for the UK over the next decade and support thousands of jobs. Shadow Chancellor Sir Mel Stride told Mr Burnham last night: 'Get Britain drilling!' He said the PM should drop the ban and approve licences for the giant Rosebank oil field and Jackdaw gas field, which could be decided as soon as next month. Whitehall sources predicted Jackdaw would get the green light in time to start supplying British homes this winter.  But a decision on opening Rosebank, which former energy secretary Ed Miliband once likened to 'climate vandalism', hangs in the balance. Ministers are also considering industry requests to ease the windfall tax on energy profits, which has been blamed for holding back investment in the UK. Andy Burnham was urged to 'get Britain drilling' after he admitted that North Sea oil revenues could ease the cost of living  Shadow Chancellor Sir Mel Stride told Mr Burnham last night: 'Get Britain drilling!' Whitehall sources predicted Jackdaw gas field (pictured) would get the green light in time to start supplying British homes this winter Sir Mel said: 'If Burnham was really serious about tackling the cost of living and getting energy bills down, he would immediately approve the Jackdaw and Rosebank sites and end the ban on new oil and gas licences. 'That would be the first step towards ending Labour's Net Zero madness that is driving up costs for families and businesses and holding our economy back.' Mr Burnham's comments yesterday represent a significant shift from the position of Sir Keir Starmer, who never publicly admitted that freeing up North Sea energy would boost the economy. The Prime Minister was asked about the issue after Donald Trump revealed Mr Burnham had told him he was going to 'open up North Sea oil' when the two leaders spoke on the phone last week. Mr Burnham said: 'I indicated in the phone call that I would take a pragmatic approach when it comes to the North Sea, and that is my intention. 'There is a resource there. When people are struggling we can't ignore that.' Labour's 2024 manifesto said it would not issue North Sea licences, but Mr Burnham appeared to leave the idea open to review.  No10 played down the prospect of an imminent shift, saying there was 'no change' to the manifesto position.  But his recognition that exploiting the North Sea could boost Britain's flagging economy and public finances will pressure Labour to act. In a letter to Labour MPs last week, business and union leaders urged the Government to drop its North Sea ban. Elizabeth de Jong, chief executive of the trade body Fuel Industry UK, said: 'The UK continues to need fuels.  It makes sense to maximise the value created at home by supporting refineries and North Sea production. Domestic manufacturing sustains high-skilled jobs, strengthens energy security and underpins our industrial future.' GMB union chief Gary Smith said: 'We will need oil and gas for decades. Increasing our reliance on energy from overseas for the essential elements that power our economy and keep the country going leaves us worryingly exposed.' Mr Smith urged the Prime Minister to show he 'understands the significance of this moment – jobs, communities, and our national security are at stake'. But Mr Burnham's comments angered the Net Zero lobby. Tessa Khan, of the campaign group Uplift, said the claim that drilling in the North Sea would cut energy bills 'simply isn't borne out by the evidence', adding: 'It would also turn a blind eye to the devastating consequences of climate change. 'The choice facing Andy Burnham is whether he listens to the oil and gas lobby and its main cheerleader, Trump, or to the majority of the UK public.' Green Party leader Zack Polanski said: 'Our country is burning. Crops are failing. Thousands have been killed by extreme heat.  'The first duty of any prime minister is to keep the people of this country safe – and right now people are feeling scared. 'Allowing new oil and gas drilling will worsen the climate breakdown, putting more lives at risk and doing untold damage to our economy.' National Trust boss Hilary McGrady urged the PM to 'leave fossil fuels in the ground'.  Warning of the threat of climate change, she added: 'We've all been watching in horror as our neighbours in Europe are battling extreme fires.' The first test of Mr Burnham's new approach could come next month when consultations on Jackdaw and Rosebank are due to close.  Both were approved for drilling by the last government only for the decisions to be overturned by the courts following legal challenges by climate campaigners. Decisions on fresh applications will be taken by ministers acting in a quasi-judicial role. The Government has faced intense lobbying from both sides. Mr Miliband, a Net Zero fanatic, has been replaced as energy secretary by Miatta Fahnbulleh, who has similar views. The trade body Offshore Energies UK said the two fields could generate almost £30billion by the end of the next parliament.  Jackdaw's owner said it could supply gas for 1.4million homes, starting this winter – reducing reliance on imports and the risk of a 'gas supply emergency'. Referring to his call with Mr Burnham, Mr Trump said on Wednesday: 'He said he's going to open up North Sea oil. If you use the North Sea, the UK will be really rich.'