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Has Labour just announced an immediate ban on new North Sea oil and gas licences?

Energy chief Ed Miliband's plans for the future of the sector in the north-east are already sparking controversy days after the election.

Labour is facing demands to base GB Energy in Aberdeen. Image: PA.
Labour is facing demands to base GB Energy in Aberdeen. Image: PA.

Labour’s plans for the future of the oil and gas industry in the north-east have already sparked controversy days after Sir Keir Starmer took power.

It has been reported the party has announced an immediate ban on new North Sea licenses.

But UK Government energy chief Ed Miliband is maintaining policy set out by Labour ahead of the election.

But does that mean there will be an immediate ban for any new oil and gas fields, or is the picture much more complicated than that?

What is Labour’s stance on the energy sector?

Before the election Labour said it would not grant any new licences to proposed oil and gas fields which have not already been given approval.

Sir Keir’s party has said it will let existing oil rigs continue operating until the end of their lifespans, while upcoming projects given the green light will not be revoked.

So even though extra licences will not be approved down the line, the 100 new projects approved by Rishi Sunak last year are not being shelved.

Labour’s oil and gas policies have proven controversial. Image: Michal Wachucik/Equinor

Mr Miliband has confirmed this will remain Labour’s policy going forward now the party is in power at Westminster.

A spokesperson said: “As previously stated, we will not issue new licences to explore new fields.

“We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan.”

Industry insiders were relaxed by Labour’s comments, regarding it as a continuation of the status quo.

Why has this caused a fresh backlash?

The Telegraph reported Mr Miliband had overruled government officials to order an immediate ban on new drilling.

An energy spokesperson said: “This piece is a complete fabrication – it invents meetings and decisions that have not taken place.”

But Labour’s decision to stick by its plans to grant no additional licences sparked fears among those who want to see drilling continue.

Former Aberdeen Labour leader Barney Crockett. Image: Kami Thomson/DC Thomson.

Ex-Labour Councillor Barney Crockett, who quit the party over its energy policies last year, said there had been hope Mr Miliband would U-turn.

He said: “The feeling will be growing in the north-east that Mr Miliband has been given licence to declare war on the oil and gas industry in a way that’s calamitous for Aberdeen.

“Locally Labour has been saying they were confident they would change the policy once elected.”

SNP Westminster leader Stephen Flynn. Image: Kami Thomson/DC Thomson.

SNP Westminster chief Stephen Flynn, an Aberdeen MP, told the Press and Journal he wants to meet Mr Miliband.

He said: “The Labour Party promised workers that there would be no cliff-edge, but I fear this is precisely that and it’s ultimately our workforce in the north-east who will pay the heaviest price.”

Aberdeenshire Tory MP Andrew Bowie said: “This reckless move by Ed Miliband confirms that Labour are no friends of Scotland’s vital oil and gas industry.”

What is Scottish Labour saying?

Aberdeen Labour leader Tauqeer Malik defended his party, saying the new government’s stance was made perfectly clear prior to the election.

He told us: “This announcement has been well trailed by Labour before the election.

“This does not mean that fields such as Rosebank and Campbell cannot move forward as they can and will move forward.”

Aberdeen Labour leader Tauqeer Malik. Image: Kenny Elrick/DC Thomson

Speaking on Times Radio, Scottish Labour chief Anas Sarwar said there will be no “cliff-edge” for the industry.

He added: “We are going to ramp up that transition to make sure we have a plan that works for Aberdeen.

“All of our energy policies are rooted in those principles of protecting jobs and creating more jobs.”

One Labour insider said: “It’s the same people who didn’t like the policy before who don’t like it now we’re in government.”

Conversation