Prime Minister Andy Burnham has given his clearest indication yet that his government could allow further drilling in the North Sea, saying Labour must take a 'pragmatic' approach to net zero.
In an interview with the Financial Times, Mr Burnham appeared to endorse the position recently set out by Ecotricity founder and Labour donor Dale Vince, who has argued that continued North Sea production can be compatible with the energy transition.
Mr Vince said Britain’s reliance on fossil fuels remained 'a reality' for the coming decades, adding: 'If we approach things differently, we can actually make sense of drilling the North Sea.'
The comments come amid mounting pressure on the government to approve the Jackdaw and Rosebank developments and provide greater certainty over the future of the North Sea.
Mr Burnham also sought to reassure businesses ahead of the Budget, saying he wanted to reduce the pressure on companies and encourage wealth creators to remain in Britain.
He said: 'Of course, we need wealth creation and the best wealth creators not just forging their path here, but staying here.'
Asked whether his government would tax wealthy people out of Britain, he said: 'No, definitely not.'
The Prime Minister said his government was focused on growing the economy by 'percentage points', with Chancellor John Healey expected to set out more detail on the government’s economic approach next month.
Business leaders remain concerned about the prospect of further tax increases at the October Budget, following two successive tax-raising Budgets under former chancellor Rachel Reeves.
Source: Aberdeen & Grampian Chamber of Commerce
