Wes Streeting set for showdown with Ed Miliband as he calls on Labour to drill in North Sea

Wes Streeting is set for a showdown with Ed Miliband as the former health secretary called for Labour to drill for oil and gas in the North Sea.

The Ilford North MP set out a series of policies ahead of a potential leadership contest expected by many in Westminster within the coming months.

Speaking to the Sunday Times, he also reiterated his support for the UK’s eventual return to the EU, while saying the party should stick to its manifesto commitments on Europe in the short term.

Mr Streeting argued Labour should issue more North Sea oil and gas licences, not because it would reduce bills but because it would provide additional tax revenue.

He said: "We do have to take climate change globally much more seriously and go aggressively towards more renewable energy.

"But there’s sometimes a danger of Britain wanting to lead the world. We cut off our own nose to spite our face without contributing to the greater whole."

He also suggested he would be open to reversing the increase in employers’ national insurance contributions introduced by Rachel Reeves in her first budget in order to boost employment, particularly among young people.

Mr Streeting said: "I think we should be thinking actively about how to incentivise, whether that’s through targeted reduction in employers’ national insurance or other kinds of recruitment and retention incentives."

These positions echoed those taken by former prime minister Sir Tony Blair in an essay criticising some of Labour’s policies and accusing the Government of lacking a "coherent plan".

Mr Streeting added that Labour had come to power in 2024 "underprepared" and "lacking any sort of intellectual curiosity".

But he also said he would give Sir Tony "a flea in his ear" over some of his suggestions, particularly on artificial intelligence.

He also suggesting the former prime minister had made arguments he would not have done in office.

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Mr Streeting said: "Blair’s done himself a disservice proposing a prescription that was absent of any values.

"I feel the Tony Blair of 1997, or the Tony Blair of 2007 for that matter, would have been making an argument that said, okay, big revolution coming, how do we apply traditional values in a modern setting?"

Meanwhile, Sir Tony himself defended his essay against criticism from figures within Labour such as Mr Burnham who argued he had paid too little attention to inequality.

Writing in The Observer, he said Labour should be "cautious about treating populism as a consequence simply of economics" with Brexit and Donald Trump showing "cultural questions also matter".

The former prime minister added: "Too often progressive positions on these issues seem to have been driven by noisy pressure groups, not common sense.”"

Building on his earlier policy prescriptions, Sir Tony suggested the public would support a "rethinking of healthcare", more flexible labour regulations, and cuts to welfare to pay for increased defence spending.

The former prime minister also argued that technology innovation is a "very open competition in which Britain could and must be well placed".

Sir Tony added: "During this transition, for the country to achieve prosperity, without which there is no social justice, we need our enterprise sector to feel energised, supported and able to thrive.

"The role of government will be to create the conditions for this thriving."