Government rejects calls for new oil and gas licences in the North Sea

The UK Government has restated its opposition to issuing new oil and gas licences in the North Sea as it looks to an energy future less reliant on fossil fuels.

Among the proposed legislation announced in the King’s Speech is an Energy Independence Bill which will seek to promote alternative forms of energy such as renewables and nuclear power.

Despite renewed pressure to open up new areas of exploration in the North Sea, the bill will also look to firm up Labour’s 2024 manifesto pledge not to issue any new licences to explore new oil and gas fields.

The ongoing conflict in the Middle East has re-started the debate around North Sea oil and gas, with both Reform UK and the Tories calling for a new era of exploration.

Delivering his speech in the House of Lords, King Charles said: “My ministers believe that energy independence must be a long-term goal of national security and that the nation’s energy security requires long-term investment and reform, as demonstrated by recent events in the Middle East.

“Increased production of clean British energy will help to ensure that enemies of the United Kingdom cannot attack the economic security of the British people. My ministers will therefore introduce an Energy Independence Bill to scale-up homegrown renewable energy and protect living standards for the long-term.”

After the speech, energy minister Michael Shanks said the energy shock of the past few weeks had shown it was time to get off the “fossil fuel rollercoaster”.

He added: “The Energy Independence Bill will be a step forward to tackle the affordability crisis and protect consumers, accelerate the UK’s drive for energy security and create new, skilled jobs to deliver a fair and prosperous transition.”

But shadow energy secretary Clare Coutinho said the government’s position was “utterly deluded”.

“[Energy secretary] Ed Miliband’s Energy Independence Bill includes… banning new oil and gas from the North Sea,” she tweeted.

“He is not making us more independent. He is making us more reliant on foreign imports. We will fight him every step of the way.”

SNP MSP for Aberdeen Central, Jack Middleton, said: “Time and time again, Westminster speaks about Scotland’s energy as if it is their own - it is Scotland’s energy and it should be in Scotland’s hands.

“Aberdeen and the wider north east has been betrayed by Westminster – be it Labour, the Tories or Reform – and only the SNP is firmly on the side of Scotland and our premier industry.” 

The King’s Speech came as Prime Minister Keir Starmer fights for his political life with a leadership challenge from health secretary Wes Streeting expected to be announced tomorrow.

Asked yesterday about what advice he would give the beleagured prime minister, US President Donald Trump said: “My advice to him has always been – open up your oil in the North Sea. You got one of the great oil finds anywhere in the world and you’re not using it.

“I’ve told him from day one, you’re getting killed on energy – you’re windmilling your country to death.”