UK energy industry leaders are calling on newly appointed Prime Minister Andy Burnham to overhaul North Sea oil and gas policy, arguing his new government has an opportunity to improve investment conditions while maintaining the country’s energy transition.
Burnham officially took office Monday after succeeding Keir Starmer, pledging a “new economic model” focused on long-term growth, fiscal stability and greater regional control over key services, including energy. He has also vowed to honor existing fiscal rules while unveiling a broader economic reform agenda.
Responding to the leadership change, Aberdeen & Grampian Chamber of Commerce (AGCC) urged the new government to prioritize policies that support continued North Sea investment.
“When it comes to our energy sector, there is huge remaining potential in the North Sea,” said Russell Borthwick, chief executive of AGCC. “But this future is only achievable with a fresh approach—clearing the regulatory logjam by consenting Jackdaw and Rosebank, replacing the windfall tax with the new Oil and Gas Revenue Levy and taking a more pragmatic approach on issuing new licences.”
The business group also called for faster approvals for renewable energy projects, expanded electricity transmission infrastructure and greater support for emerging energy technologies, arguing the UK must balance its energy transition with continued investment in domestic oil and gas production.
“From high-value manufacturing, to supply chain services, to engineering excellence, our region can support that exciting new chapter—but only if we’re not held back by overregulation and punitive taxation,” Borthwick said.
While Burnham has not yet outlined a detailed energy strategy, his administration is expected to maintain Labour’s fiscal discipline while reshaping broader economic policy. Bloomberg Economics noted that Burnham’s government is likely to remain constrained by limited fiscal flexibility, with reports that Home Secretary Shabana Mahmood will become Chancellor viewed as a signal of continued market-friendly economic policies.
The appointment comes at a pivotal time for the UK offshore sector, with operators awaiting regulatory decisions on major North Sea developments including Shell’s Jackdaw gas field and the Rosebank oil project, while the future of the Energy Profits Levy and offshore licensing remains a key concern for producers and investors.