Andy Burnham Plans North Sea Drilling and Thames Water Takeover

Incoming Prime Minister Andy Burnham is preparing to launch a series of sweeping economic and energy shifts upon taking office Monday. He has directed the civil service to draft approvals for the Rosebank oil field and Jackdaw gas field in the North Sea, as well as the expansion of tie-back drilling near existing sites. While these projects were previously overturned in 2025, Burnham's team suggests the move does not violate the Labour Party's 2024 manifesto pledge because the licenses were originally granted under a previous government.

This policy shift represents a departure from the position of outgoing Prime Minister Keir Starmer, who opposed new drilling to prioritize renewable energy. The decision follows pressure from trade unions, the Conservative Party, and U.S. President Donald Trump. Environmental groups, including Greenpeace and the Green Party, have criticized the plan as a reversal of net-zero commitments.

In addition to energy projects, Burnham intends to bring Thames Water under public control, considering models such as special administration or a not-for-profit cooperative. He is also proposing a broader economic agenda that includes appointing Shabana Mahmood as Chancellor, reforming property taxes via a land value tax, and launching a new council house-building program. These initiatives have already caused caution among FTSE 100 water firm investors.