After sustained pressure from the Conservatives, Reform UK, trade unions, the Great British PAC and the energy industry, Andy Burnham’s Labour Government has finally approved the Jackdaw gas project in the North Sea – but critics say the decision should have been made months ago, before Britain was plunged into another energy price crisis.
Labour has finally given the go-ahead for a major North Sea gas development previously approved by the Conservatives, following months of uncertainty, mounting political pressure and a dramatic surge in wholesale gas prices.
Energy Secretary Miatta Fahnbulleh approved the Jackdaw project on Wednesday, October 21, opening the way for development of a gas field capable of supplying the equivalent of around six per cent of Britain’s annual gas demand.
The decision represents a significant moment for Prime Minister Andy Burnham, whose Government has faced growing demands to abandon its hostility towards further North Sea oil and gas development and put Britain’s energy security ahead of ideological divisions within Labour.
It also raises an uncomfortable question for ministers: why has it taken so long to approve a project that received permission under the previous Conservative Government?
The decision comes as wholesale gas prices have climbed to their highest level since December 2022, threatening another punishing winter for households and businesses already struggling with the cost of living.
According to figures reported by The Telegraph, UK wholesale gas was trading at approximately 210p per therm, more than twice its level a year earlier.
Although still below the extraordinary peaks experienced during the 2022 energy crisis, the latest surge has renewed concerns about Britain’s exposure to volatile international energy markets.
The Jackdaw field, approximately 150 miles east of Aberdeen, has the potential to produce enough gas to meet the annual heating needs of the equivalent of 1.4 million homes.
Yet the development has spent years caught between environmental legal challenges, political uncertainty and Labour’s controversial approach to Britain’s remaining North Sea resources.
Conservatives approved it years ago
The original approval for Jackdaw was granted in 2022 under the Conservative Government.
However, the project subsequently became entangled in legal proceedings brought by environmental campaigners, who challenged the way the emissions associated with burning the extracted fossil fuels had been assessed.
A Scottish court ruled the earlier consent unlawful, requiring the project to undergo a fresh approval process.
Labour’s 2024 election manifesto pledged to end the issuing of new licences for North Sea oil and gas exploration, but Jackdaw was already licensed and therefore did not fall directly within that commitment.
Despite this distinction, the Government delayed reaching a decision, prompting criticism from opposition politicians, industry representatives and trade unions concerned about the future of Britain’s domestic energy production.
Conservative leader Kemi Badenoch accused Labour of wasting valuable time over a project her party had already approved.
“If they’d done this in the summer, we’d have had that gas heating British homes this Christmas,” she said, according to The Telegraph.
“An unnecessary waste of time and money by a party that puts its own interest above the country’s.”
Her criticism goes to the heart of the political argument surrounding Jackdaw.
At a time when Britain needs dependable energy supplies, opponents argue that Labour has allowed internal divisions over climate policy to complicate decisions affecting jobs, investment and national energy security.
The Government has now approved the project, but the delay has done little to reassure an industry seeking certainty about its future.
Burnham finally acknowledges Britain still needs oil and gas
Announcing his support for the decision, Mr Burnham acknowledged that fossil fuels would remain essential to Britain’s energy requirements for decades.
He welcomed the approval, saying it would safeguard hundreds of jobs and help maintain domestic energy supplies during the winter.
The Prime Minister insisted Labour remained committed to renewable energy and achieving net zero by 2050, but accepted that oil and gas would continue to play an important role.
It is a striking change of emphasis from a party whose energy policies have repeatedly attracted criticism from North Sea businesses and workers.
The Government’s own announcement confirmed that Jackdaw could begin supplying gas as early as the end of October, highlighting how close the development already was to production.
For critics of Labour’s approach, the timing makes the months of uncertainty particularly frustrating.
The Government has also announced a £2 billion Energy Wealth Fund, intended to channel revenues from oil and gas into the transition towards cleaner energy.
The announcement underlines another awkward reality for Labour: the existing oil and gas industry is expected to help finance the very energy transition intended to reduce Britain’s dependence on fossil fuels.
Conservatives and Reform push for Britain’s energy independence
The decision follows sustained campaigning by the Conservatives and Reform UK in favour of exploiting Britain’s remaining North Sea resources.
Both opposition parties have challenged Labour’s restrictive approach to domestic oil and gas production, arguing that Britain should make greater use of its own reserves rather than become increasingly dependent on imports.
The Conservatives have particularly emphasised the importance of maintaining investment, skilled employment and domestic production capacity.
Reform UK has similarly advocated expanding North Sea extraction as part of its wider opposition to Labour’s net-zero policies.
Their arguments have gained renewed prominence as international instability has sent energy prices soaring.
However, the decision cannot be attributed conclusively to either party’s campaigning alone. Pressure also came from industry leaders, trade unions and the United States, while the Government maintains that its approval followed the required environmental assessment.
President Donald Trump has repeatedly urged Britain to exploit its domestic energy resources, adding international pressure to an already difficult political decision for Mr Burnham.
Even Labour’s trade union allies demanded action
Perhaps most damaging for Labour politically has been the opposition to further delays from trade unions representing workers in the North Sea energy industry.
GMB general secretary Gary Smith welcomed the decision but warned that Britain had spent too long postponing vital choices about its domestic energy supplies.
He argued that the country could not afford continued uncertainty at a time of international volatility.
Mr Smith also called for the Government to go further by approving the Rosebank development.
His intervention demonstrates that concerns about Labour’s North Sea policies are not confined to Conservative and Reform politicians.
They are shared by workers and union leaders worried about the future of a strategically important British industry.
Green Party furious as Labour faces another rebellion
The approval has triggered an angry response from environmental campaigners, exposing the competing pressures facing Mr Burnham.
Green Party leader Zack Polanski described the decision as “climate vandalism” and accused Labour of betraying its environmental commitments.
Mr Polanski argued that Jackdaw would make little difference to household energy bills while increasing fossil fuel production.
Environmental organisations have similarly warned that expanding oil and gas extraction risks undermining Britain’s climate commitments.
There is an important distinction between increasing domestic gas production and reducing consumer energy prices.
British-produced gas is generally sold into an internationally connected market, meaning approval of Jackdaw does not guarantee cheaper household bills.
Nevertheless, supporters argue that maintaining domestic production can reduce reliance on imported supplies, sustain employment and generate tax revenues.
The debate therefore extends beyond immediate household costs to questions of long-term energy security, industrial capacity and economic resilience.
Rosebank decision still hanging in the balance
Attention will now turn to Rosebank, the major oil development west of Shetland that also received approval under the previous Conservative Government before becoming caught up in legal challenges.
Like Jackdaw, Rosebank has required further consideration of the emissions associated with the oil and gas it would produce.
But Ms Fahnbulleh has indicated that Rosebank presents a different set of considerations, partly because much of its oil would be exported.
She has confirmed that a decision will take longer.
The continuing uncertainty has raised concerns among investors about the Government’s willingness to support major North Sea developments.
According to the Financial Times, Ithaca Energy executive chairman Yaniv Friedman has warned that the company could halt further UK investment if Rosebank is refused approval.
That would present another serious challenge for a Labour Government already under pressure over Britain’s economic performance and employment prospects.
A victory for common sense – but why did Labour take so long?
For the Conservatives and Reform UK, Jackdaw’s approval will be seen as a welcome vindication of their arguments that Britain’s domestic energy resources should not be abandoned.
For Labour, it is an acknowledgement that the transition towards renewable energy cannot eliminate the country’s immediate need for reliable oil and gas supplies.
The Government argues that its decision is consistent with its manifesto because Jackdaw already held an exploration licence and has now satisfied the necessary environmental requirements.
That distinction is legally and politically important.
But it does not remove wider questions about the uncertainty facing North Sea investors, the future of skilled British jobs or the country’s dependence on energy imports.
Nor does it explain why a Government now openly acknowledging that Britain will need oil and gas for decades has appeared so reluctant to embrace the domestic industry capable of supplying them.
With gas prices at their highest level in nearly four years and households facing another difficult winter, the decision to approve Jackdaw is welcome news for Britain’s energy sector.
But the central question remains: if developing Britain’s own energy resources is the right decision today, why has Labour spent so long making it?
And with Rosebank still awaiting approval, the battle over the future of Britain’s North Sea oil and gas industry is far from over.
