Tony Blair warns Andy Burnham that Britain 'can't afford' Labour's Net Zero targets - while Ed Miliband is 'ready to approve North Sea gas field to land job as Chancellor'

By GREG HEFFER, POLITICAL CORRESPONDENT Published: 10:58, 14 July 2026 | Updated: 10:59, 14 July 2026 Tony Blair has warned Andy Burnham that Britain 'can't afford' to continue with Labour's Net Zero agenda when he becomes prime minister next week. With Mr Burnham due to replace Keir Starmer on Monday, Sir Tony told the incoming PM that the Government is 'penalising' British businesses with its climate policies. Sir Tony, who was Labour premier himself between 1997 and 2007, insisted the 'future is renewables and clean energy'. But he warned the current drive to Net Zero - which is being led by Energy Secretary Ed Miliband - is damaging the country. It came amid claims Mr Miliband wants to approve the Jackdaw gas field in the North Sea to boost his chances of being named as Mr Burnham's Chancellor.  He is said to be keen to give the go-ahead to the field in order to show he is not a Net Zero 'zealot' and to calm jitters about his possible appointment at the Treasury. Mr Miliband is reported to have privately signalled his willingness to grant consent for Jackdaw, but cannot confirm the move until a consultation closes next month. He has been tipped to be named Chancellor despite trade union leaders warning Mr Burnham against making the controversial appointment. Tony Blair has warned Andy Burnham (pictured) that Britain 'can't afford' to continue with Labour's Net Zero agenda when he becomes prime minister next week Sir Tony insisted the 'future is renewables and clean energy'. But he warned the current drive to Net Zero - which is being led by Energy Secretary Ed Miliband - is damaging the country Speaking at the Tony Blair Institute's summer drinks reception in London on Monday night, Sir Tony issued a fresh swipe at Mr Miliband's Net Zero agenda. 'We're penalising our own businesses at the moment with this, and we can't afford to do that,' Sir Tony said, in comments reported by The Independent. 'It's as simple as that. And I don't, you know, it's not that I disagree with having the ambition over time to move to Net Zero.' But there were claims that Mr Miliband might soften his stance on fossil fuels and approve the Jackdaw field, which sits 150 miles east of Aberdeen. An industry source told The Telegraph: 'They want to do it. Ed Miliband sees it as a way of showing willing to the City but they are likely to follow the law. 'There is a public consultation that does not end until August 10 and if they announce anything before then they would run the risk of a judicial review. 'So, privately, they are signalling that they want to do it.' Sharon Graham, the general secretary of Unite, recently warned Mr Burnham against naming Mr Miliband as his Chancellor. The trade union leader - who previously branded Mr Miliband's ban on new oil and gas exploration in the North Sea as an 'act of self-harm' - said promoting Mr Miliband would be 'a noose around the neck' of job creation. It has also recently emerged that senior officials in Donald Trump's administration have privately warned that appointing Mr Miliband as Chancellor would be a 'mistake'. It came amid claims Mr Miliband wants to approve the Jackdaw gas field in the North Sea to boost his chances of being named as Mr Burnham's Chancellor Britain is facing the threat of fuel shortages this winter without the approval of the Jackdaw gas field in the North Sea, Labour has been warned Top US officials are reported to have told senior Labour figures they are also concerned about Mr Miliband's opposition to new oil and gas drilling in the North Sea. The US President himself has frequently criticised Sir Keir in public for the Labour Government's stance on fossil fuels. Industry regulator, the North Sea Transition Authority, is currently considering a revised application for Jackdaw, as well as the Rosebank field off Shetland. Initial approval of both sites - which was given by the previous Tory government - was later withdrawn when a court ruled consent was granted unlawfully following a case brought by environmental campaigners. This forced the owners to seek fresh permission to extract oil and gas from the fields, with a final decision set to fall to the Energy Secretary if the NSTA gives its approval. Neil McCulloch, the boss of Adura - the company behind Jackdaw, has warned Britain is facing the threat of fuel shortages this winter without the approval of the gas field. A source close to Mr Miliband told The Telegraph any decision on Jackdaw was quasi-judicial and that he could not comment. A spokesman for the Department for Energy Security and Net Zero said: 'Our priority is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives our clean energy future of energy security, lower bills, and good long-term jobs. 'The UK has diverse and resilient energy supply and gas will continue to play a key role as we transition to more secure, clean homegrown energy.'