"Breaking Point" Nears In Labor Party; Heathrow And Rosebank Oil Field Anger Reveal Cracks Within Cabinet

Keir Starmer is facing a growing internal backlash over the potential approval of a giant new oilfield, after Treasury sources indicated Rachel Reeves was likely to give it her backing. MPs described a “breaking point” in relations and called for Starmer to reiterate his own commitments to no further oil and gas licences. The proposed Rosebank development was given the go-ahead in 2023 but was ruled unlawful by a court last week.

The energy secretary, Ed Miliband, has previously described the licence issued to Rosebank as “climate vandalism” – setting up a potential major clash between his department and the Treasury. Reeves is understood to be supportive of a new application for environmental consent, with allies suggesting that would not violate Labour’s manifesto, which promised not to issue new exploration licences, but not to cancel ones that have already been issued. Miliband’s department is due to publish new guidelines in late spring which could scupper any attempt by the oil companies to successfully resubmit their applications.

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A fourth Labour MP said it was important to make the case that new oilfields should not be seen as an automatic growth advantage. “You’re banking on what could potentially very quickly become stranded assets, and the profits go to private companies but it’s the public sector that will end up clearing up the mess. “That is not a good investment and I think there are some of my colleagues that sort of think that all growth is good and that’s actually economically illiterate.

“The new intake are very clear. If Trump is closing his door on green investment, we should be opening the door to green investment. The Americans are going to miss out. We don’t want to.” The backlash against Rosebank would be “much much bigger” than on Heathrow, another MP said. “It says a worrying thing about our political strategy,” they said. “There was a quite clear line on all of this stuff. And then if you get panicked just by a couple of headlines in the Daily Mail, then that as a narrative feels a bit worrying.” “They can hold the line that you can make electric planes but digging up a tonne of oil really isn’t anything other than environmental vandalism,” another MP agreed. “Rosebank is fundamentally a disaster.”

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https://www.theguardian.com/politics/2025/feb/03/pm-faces-growing-internal-backlash-over-potential-approval-of-rosebank-oilfield