Andy Burnham has been accused of betraying Labour’s Left and the Greens after ministers approved the long-delayed Jackdaw gas project.
The Government has given the go-ahead for drilling in the North Sea despite opposition from some Labour MPs and reported resistance from Ed Miliband.
The decision was welcomed by trade unions and several Labour MPs, who argued that domestic production would strengthen jobs and energy security.
Conservatives, however, accused ministers of wasting two years “faffing” over the project. They claimed gas from Jackdaw could have been helping heat British homes this winter if approval had come sooner.
Environmental campaigners have consistently opposed new North Sea developments, while the offshore industry has highlighted their potential economic value and contribution to the country’s energy security.
Supporters of Jackdaw have estimated that the project could create 3,500 jobs during construction, followed by 880 positions over its operating lifetime.
Mr Burnham said approving Jackdaw would “protect hundreds of jobs and help keep millions of homes warm this winter”. He also stressed that the Government remained “committed to moving towards renewable energy”.
Because North Sea gas is primarily used in the UK, supporters say it could do more to ease household energy costs than oil, which is largely exported.
The previous Conservative Government approved production at Jackdaw in 2022. The project was subsequently held up by a legal challenge from Greenpeace, leaving Labour ministers to decide whether the drilling should proceed.
Energy Secretary Miatta Fahnbulleh acknowledged that the development would add to climate change but argued that using gas produced in Britain was “much better” than importing it from overseas.
The Prime Minister faced pressure from climate activists and Labour backbenchers to “stick to the spirit of Labour’s manifesto commitment” by rejecting consent for the project
Mr Burnham said Jackdaw would “protect hundreds of jobs and help keep millions of homes warm this winter”, while insisting the Government remained committed to the shift towards renewable energy
Speaking in Aberdeen, Ms Fahnbulleh said: “The reality is, as we put billions into low-carbon energy and make that transition, we are going to need gas.
“Ultimately, if the choice is between home-produced gas from our doorstep, with conditions attached to the emissions from its production, and importing gas or oil from around the world, I think it is much better for us to have homegrown gas.
“It supports our energy security and, critically, means we are protecting jobs here in Aberdeen.”
Mr Burnham said: “At a time when people are really struggling, it is right that we look responsibly at maximising Britain’s existing energy reserves where they can provide help.
“We are committed to the transition towards renewable energy and to reaching net zero by 2050.
“But even under our ambitious climate plans, oil and gas will remain part of our energy mix for decades to come.
“That is why we are taking a pragmatic approach to the North Sea. We are also creating a new Energy Wealth Fund to invest in renewables, support the green transition and help bring down energy bills over the long term.
“Our approach will strengthen energy security, support British workers, ring-fence future North Sea revenues to accelerate the green transition, meet our ambitious climate targets and, crucially, reduce bills.”
However, Mr Burnham is braced for anger from his own troops – and another difficult decision is looming over the Rosebank oil field.
The PM could be particularly vulnerable on his Left flank, after successfully wooing back a chunk of support from the Greens in recent months.
Zack Polanski immediately seized on the news to accused ministers of ‘climate vandalism’.
‘Today’s decision by Labour is a betrayal of all of our futures, Labour has abandoned all credibility in the fight against climate change,’ he said.
‘The Energy Secretary has herself said it will make no difference to energy bills; the Health Secretary has admitted the summer heatwave added to pressure on the NHS, and the industry’s own assessment is that it will create only 27 jobs.
‘This is a victory for Shell over the people.’
Labour MP Alex Sobel, the head of the left-wing Mainstream group that helped make Mr Burnham leader, told Politico: ‘Jackdaw won’t draw gas for many years. Won’t make an impact on global prices and will give mixed messages in terms of investment in terms of both renewables and decarbonisation of home heating.’
Campaigners branded the Jackdaw decision ‘disappointing’ and urged the Government to reject the ‘even more damaging’ Rosebank scheme.
Kate Norgrove, WWF chief impact officer, said: ‘This is a disappointing decision and the Government now urgently needs to show that it remains 100 per cent committed to the clean energy transition by rejecting the even more damaging Rosebank oil field.
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‘It must set out the UK’s roadmap to transition away from fossil fuels for good, securing well-paid clean energy jobs and protecting the public from soaring bills in the process.
‘The truth is that this decision will only support a tiny number of jobs, do nothing to lower prices, barely move the needle on growth, and undermine the UK’s climate leadership.
‘We have all seen the devastating consequences of rising temperatures this summer for people and nature, and it’s clear that politicians are out of step with public opinion on taking action on climate change.’
Green Party of England and Wales leader Zack Polanski blasted the decision to approve Jackdaw as ‘climate vandalism’.
He said: ‘Today’s decision by Labour is a betrayal of all of our futures, Labour has abandoned all credibility in the fight against climate change.
‘The Energy Secretary has herself said it will make no difference to energy bills, the Health Secretary has admitted the summer heatwave added to pressure on the NHS and the industry’s own assessment is that will create only 27 jobs.
‘This is a victory for Shell over the people.’
The decision was put on hold after a legal challenge while Ed Miliband was Net Zero Secretary
Jackdaw is a gas field situated 150 miles east of Aberdeen.
Adura, the joint venture between Shell and Norweigian state energy firm Equinor which is behind the project, previously said the move would strengthen energy security and support vital jobs.
An updated environmental impact assessment earlier this year also said it will ‘not materially influence’ greenhouse gas emissions.
It is estimated that both the Jackdaw gas field and Rosebank oil field west of Shetland can contribute £28.7billion to the economy, generate £1.8billion in tax revenues by the end of this parliament, support 3,500 jobs at peak construction and sustain 880 jobs throughout production.
Conservative leader Kemi Badenoch previously said that reopening Jackdaw was ‘common sense’.
Speaking earlier this year she said Mr Burnham faced a ‘choice’ of either pushing for cheaper energy or allowing ‘Net Zero madness’ to ‘hold our country back’.
She added: ‘Jackdaw alone could supply around 6 per cent of our gas needs this October.’
It is a move which will also please US President Donald Trump, who popularised the phrase ‘drill baby drill’ in his 2024 election campaign, calling for an increase oil and gas production worldwide.
North Sea oil was high on the agenda when Burnham and Trump first shared a phone call in July.
The President has repeatedly argued Britain should exploit more aggressively rather than relying on wind farms.
He said on Truth Social: ‘I had a very good conversation with the new Prime Minister of the United Kingdom, Andy Burnham. We discussed many subjects, including the outstanding relationship we have had with the UK. We will be meeting in the not too distant future for topics of mutual interest.
‘The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help! We discussed North Sea Oil, Trade, the Military Alliance, Demining of the Hormuz Strait, and many other topics.
Donald Trump has repeatedly called for the Prime Minister to exploit oil and gas more aggressively rather than relying on wind farms
Energy Secretary Miatta Fahnbulleh said it is ‘much better’ to use domestically produced gas than import it
Russell Borthwick, chief executive of Aberdeen & Grampian Chamber of Commerce, praised the change of heart by the government and called for them to go further and approve Rosebank.
He said: ‘This is a hugely welcome decision, and exactly the sort of pragmatic call the North Sea has been crying out for.
‘Jackdaw is 99.9 per cent complete and, with approval now secured, gas from this field will be flowing into homes up and down the country within weeks.
‘This is a direct, tangible boost to the UK’s energy security at a time when it matters most.
‘Every molecule of gas we produce in the North Sea, under some of the world’s highest environmental standards, is a molecule we don’t have to import on a tanker from overseas. That’s good for jobs, good for the supply chain, and good for the climate.
‘But Jackdaw cannot be the end of the story. Rosebank is every bit as vital to our energy security and every bit as ready to deliver for the UK supply chain anchored here in the north east of Scotland.
‘Government must now move with the same urgency and pragmatism and get Rosebank over the line without further delay.’