Chancellor Rachel Reeves has voiced her support for two North Sea drilling projects, even as Energy Secretary Ed Miliband strikes a more cautious tone.
She said she was “very happy” to back exploration at both the Rosebank oil field and the Jackdaw gas field, citing the potential for job creation and increased tax revenues as key reasons for her position.
"It would, of course, create jobs and tax revenue, and that is why we continue to support oil and gas for decades to come," she said.
The ongoing instability in the Middle East is restricting oil and gas transit through the Strait of Hormuz, driving up prices and demonstrating Britain's need to secure domestic energy supplies.
Mr Miliband has struck a more cautious tone regarding excessive dependence on new fossil fuel extraction, though a decision on the licences is anticipated.
The situation presents a challenge for Labour, who made a manifesto pledge to block fresh oil and gas drilling as part of its net zero ambitions.
Ms Reeves addressed this tension, and said: "We said in our manifesto we would honour existing licences but the courts overturned the previous government's decision".
The licensing decisions have gained political significance amid concerns over escalating energy costs and rising household energy bills.
Last week, Conservative leader Kemi Badenoch pressed Sir Keir Starmer to step in and approve both the Rosebank and Jackdaw projects.
The Prime Minister declined to do so, explaining that the licensing decision must legally be made by Mr Miliband.
The conflict between the United States and Israel against Iran has contributed to these price concerns, making the question of domestic energy production increasingly urgent for the government.
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The Prime Minister posted on X: “Shameful. Nigel Farage should do the decent thing and sack him".
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"I certainly disagree with anything that looks like it’s undermining Nato".
PM condemns 'appalling action' in Strait of Hormuz with European Commission President
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Detailing the discussion, a Downing Street spokesman said: “They condemned Iran’s appalling action in the Strait of Hormuz, which is holding the global economy hostage.
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David Miliband says UK 'has to improve engagement with EU'
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Mr Miliband said "hunkering down" and waiting two-and-a-half years for a new American president is not a viable option.
“We should hold as firmly to those aspects of the American Alliance that we can sustain", he told BBC Radio 4, "but obviously our geography is with Europe, and we’re going to have to sustain and improve dramatically our engagement with the European Union and other European countries.
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'No current supply issues' for fuel in the UK says business minister
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Speaking to Sky News, she said: “There are no current supply issues.
“But, of course, we are assessing the situation and governments, of course, plan for contingencies as well".
She added: “People should, over the Easter weekend, continue to fill up their cars and take those journeys, if they are going for a short trip abroad over the coming days, or whatever plans they have".
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US and EU relationships 'equally important' to UK says business minister
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It comes after Donald Trump said he was considering pulling out of Nato after allies did not join his war against Iran.
Speaking to Times Radio, Ms Dearden said the closer relationship with Europe is “important for people’s cost of living”.
However, she added: “But that doesn’t mean that we are picking sides between the US and the EU, we really recognise that both those relationships are equally as important, not just for our economy, but for our national security as well.”
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