Ed Miliband is ready to approve production at the Jackdaw gasfield in the North Sea as speculation grows that he could become Andy Burnham’s chancellor.
The energy secretary has told friends that he is minded to grant consent to Jackdaw, 150 miles east of Aberdeen, to boost the domestic supply of gas in the wake of the disruption to fossil fuel supplies caused by the conflict in the Middle East.
Miliband is understood to believe that consent would be compatible with the UK’s legally binding climate commitments. He is more sceptical about the Rosebank field, which mainly contains oil reserves and where it would take longer to start production. In opposition Miliband said allowing Rosebank to go ahead would be an act of “climate vandalism”.
Allies insist Miliband is not a “zealot on the eco issue” and will take a measured approach if he is appointed chancellor. “He’s much more a pragmatist than he’s painted to be and that wouldn’t be difficult to show, given the way he’s being portrayed,” one friend said.
The government has come under growing pressure from trade unions, businesses, the Conservatives and former Labour prime minister Tony Blair to allow more drilling in the North Sea. Last week the Jackdaw platform’s owners said it was “hyper-critical” that the government approved production to avoid a risk of domestic supply shortages this winter.
Neil McCulloch, Adura chief executive, told the BBC the project was in its final stages and could meet 6% of the UK’s gas from 1 October. But Doug Parr, Greenpeace’s UK chief scientist, said giving consent to the Jackdaw field would be “reckless and indefensible”.
The project has been waiting for approval from Miliband since 2024, after the High Court ruled that a previous licence was invalid because it had not taken into account the carbon emissions generated from burning the gas it produced.
The energy secretary is due to make a decision within weeks on the future of the North Sea fields. If Miliband moves to the Treasury the decision will formally fall to his successor at the Department for Energy Security and Net Zero, but as chancellor his advice will still carry weight. The chancellor, Rachel Reeves, has made clear that she would like to see more drilling in the North Sea.
Miliband is the favourite to become Burnham’s chancellor but he has not been told whether he will get the job. Last month Sharon Graham, the Unite boss, told The Observer that appointing him would put “a noose around the neck” of job creation. Some business leaders are concerned that he would pursue a more leftwing agenda.
Allies of Miliband argue that he has the expertise and experience required to grip the Treasury. In Whitehall he is seen as one of the most effective ministers with a reputation for getting things done.
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Miliband knows he has to address the criticisms and is preparing a series of pro-business announcements that could be made quickly if he is appointed chancellor. One idea under consideration is to cut national insurance for small businesses in the next Budget. The proposal is included in a paper prepared for Burnham by economist Miatta Fahnbulleh, an MP and former minister who is close to Miliband.
His supporters make the case that his soft-left credentials would also help him persuade Labour MPs of the need for welfare reform. During the Makerfield byelection campaign, Miliband was among those urging Burnham to announce that he would stick to the existing fiscal rules and manifesto tax pledges.
As energy secretary, Miliband has made two-thirds of the major planning decisions in the government. “Ed has shown how to deliver a pro-growth, pro-business, pro-worker agenda in government, overseeing a boom in clean energy investment, driving jobs and growth right across the country,” an ally said.
Photograph by Wiktor Szymanowicz/Future Publishing via Getty Images