Sir Keir Starmer is facing growing internal pressure to rethink Labour’s stance on North Sea oil and gas as divisions widen over the party’s net-zero agenda.
According to The Times, ministers are increasingly questioning Labour’s long-standing argument against new North Sea drilling, warning the government risks overlooking the wider economic benefits of domestic energy production.
The debate intensified after former prime minister Sir Tony Blair urged Starmer to abandon key green commitments championed by Energy Secretary Ed Miliband.
Blair accused Miliband of pushing a “quixotic fantasy” and said that China, the world’s largest greenhouse gas emitter, did not care about his beliefs.
Speaking to Times Radio, Blair said: “Britain’s emissions are under 1 per cent of global emissions. We can’t solve climate change by imposing costs on our own businesses and consumers when the rest of the world is not doing the same.”
The Times reports that senior Labour figures have privately challenged repeated claims that new oil and gas exploration would “not take a penny off bills”. Some inside government have woken up to the fact that increased domestic production would strengthen the pound and reduce wider economic costs.
One Whitehall source told the newspaper: “People keep saying that it ‘won’t take a penny off’ bills. But if it improves your balance of payments, it helps your currency, potentially letting you get more for your money on all sorts of goods. Even small changes make a difference at scale. It might get us a few more solar panels and batteries for the same price too.”
Concerns are also reportedly growing within government over the UK’s increasing dependence on imported gas.
An industry insider told The Times: “There is a growing level of anger about the amount of gas we import and targets that are never going to be met. Ministers need to be honest about what is achievable and recognise the wider economic benefits the North Sea brings, from tax revenues to jobs.”
A Department for Energy Security and Net Zero spokesperson said: “The government is implementing the manifesto commitment to deliver a fair and balanced transition in the North Sea, managing existing fields for the entirety of their lifespan, and not granting new exploration licenses because they will not support our energy security and will not take a penny off bills.”