Andy Burnham is expected to announce plans for new oil and gas drilling in the North Sea, marking a major departure from Labour’s 2024 manifesto commitment to halt the issuing of new drilling licences.

The incoming prime minister is reportedly preparing to unveil the policy shortly after entering Downing Street on Monday. The move is likely to trigger tensions within Labour, particularly with Energy Secretary Ed Miliband, who has continued to support the party’s pledge to block new North Sea licences.

The announcement is expected to focus on the Jackdaw gas field, located around 150 miles east of Aberdeen and owned by Shell, as well as Rosebank, an oil and gas development north-west of Shetland operated by Adura, a joint venture between Equinor and Shell.

Regulators approved drilling at both projects under the previous Conservative government. However, those approvals were later overturned following a legal challenge brought by Greenpeace.

The policy, first reported by the BBC, is expected to form part of a wider package of measures planned by Burnham. Other proposals reportedly include bringing water and energy companies into public ownership and launching a major council house-building programme.

The decision comes amid renewed debate over the UK's energy security and rising fuel prices linked to the Iran war, which has disrupted global oil supplies through restrictions on shipping in the Strait of Hormuz.

Former Prime Minister Sir Keir Starmer had previously opposed new North Sea drilling licences, arguing that they would not reduce household energy bills and that the UK should accelerate its transition towards renewable energy.

The approach faced criticism from the Conservatives and Reform UK, who argued that the UK should make greater use of its domestic energy resources during a period of global supply disruption.

US President Donald Trump also questioned why Britain was not making fuller use of its North Sea energy reserves and called on the UK to “open North Sea oil.”