Ed Miliband is prepared to soften his stance on North Sea gas drilling in a move that would smooth his path to becoming Chancellor in a prospective Andy Burnham government, allies say.
The energy secretary, who has built close ties with Burnham, has been the subject of a furious briefing war since The i Paper exclusively revealed he was the frontrunner in the race to succeed Rachel Reeves, who is widely expected to be sacked by
His determination to pursue strict net zero targets at all costs – and his stalling of fossil-fuel projects – have come under from the unions and business leaders.
Now allies say he is prepared to give ground and is “winning the argument” to become Burnham’s Chancellor.
Miliband to send “an important signal”
They claim he is preparing to approve plans for the first major North Sea gas field project in almost ten years in a bid to burnish his pro-business credentials and answer some of the concerns of the unions.
A source familiar with the discussions said: “We expect it to be approved which will send an important signal.”
Last weekend, Sharon Graham, the Unite general secretary, said that Miliband as Chancellor would be a “noose around the neck of job creation”.
Jackdaw – located around 150 miles off Aberdeen – could begin production within months, supplying gas by winter if regulatory hurdles are cleared quickly, as most infrastructure is already in place.
Supporters argue it could provide enough gas to heat more than one million homes and contribute around 6 per cent of future UK gas production at peak output, while industry groups and unions say approval would help sustain thousands of jobs across the North Sea supply chain.
The Jackdaw decision would mark a significant policy shift for Miliband, who previously said major fossil fuel projects were incompatible with the UK’s climate goals.
Environmental groups say the long-term impact on energy bills will be negligible and argue that investment should instead focus on renewables, insulation and heat pump roll-out.
Battle to be Burnham’s Chancellor
However, Miliband is said to still be opposed to drilling the Rosebank field, which mostly contains oil.
The consent for Jackdaw, which was originally approved in 2022, was overturned after a legal ruling in 2025, which required fresh consideration of emissions from burning extracted fossil fuels.
The project is now going through a fresh approval process, with the decision is expected to land on Miliband’s desk as energy secretary later this summer.
Asked whether Miliband was poised to approve it, a source close to Miliband said: “We cannot comment on quasi-judicial decisions.”
Miliband’s allies have launched a fightback as the battle to become Burnham’s chancellor was plunged into bitter infighting.
Yesterday, The i Paper revealed that despite Burnham only being an MP for four days and still a few weeks from Downing Street, his allies are are squabbling over who should be his Chancellor.
Other potential candidates for the job include Wes Streeting, the health secretary, Shabana Mahmood, the home secretary, Pat McFadden, the Work and Pensions Secretary, and John Healey, the former defence secretary.
Miliband best placed to cut welfare, allies argue
As Miliband’s allies launched a counter offensive, one Labour MP said Miliband was the only candidate capable of overseeing the cuts to the welfare budget, which many in the party now agree is necessary.
An ally said: “It is going to need someone from the progressive wing of the party to bring the PLP [Parliamentary Labour Party] with it on the welfare journey.”
Another Labour MP said: “He’s the best economist in the PLP.” Burnham is understood to be putting his final touches to his top team. It is understood that no final decision has been taken on who will take over from Reeves at the Treasury should Burnham become PM, as is widely expected.
However, behind the scenes Miliband’s allies are growing increasingly confident. “Team Miliband are pushing back quite strongly against the Stop-Ed campaign and seem to be winning the argument,” a source close to the discussions told The i Paper.
In what some have interpreted as a pitch to become Chancellor, Miliband on Tuesday hailed a boost to UK jobs and growth as government data revealed that private sector companies have pledged more than £100bn in investment into the green economy so far in this Parliament.
Offshore wind, solar power and the electricity grid make up the bulk of the planned investment, most of it between 2024 and 2031, which will go to all regions of the UK and comes from a mixture of UK companies and overseas sources including the EU and Japan.
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