Rachel Reeves on collision course with Ed Miliband as she backs North Sea drilling

The Chancellor pointed to instability in the Middle East as a key factor driving her position, noting difficulties in transporting oil and gas through the Strait of Hormuz.

"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.

Ms Reeves emphasised current disruptions were pushing up prices, adding: "It does show that we have got to take control of our own energy supplies here in Britain".

The final decision on whether to grant the drilling licences now falls to Energy Secretary Ed Miliband, who has previously expressed reservations about excessive dependence on new fossil fuel extraction.

Sir Keir Starmer declined requests from Conservative leader Kemi Badenoch last week to personally intervene and approve the Rosebank and Jackdaw projects, stating that the matter legally belonged with Mr Miliband.

Meanwhile, Scottish Labour leader Anas Sarwar has voiced his belief that both sites should receive approval.

When questioned about Miliband's performance as Energy Secretary, given his perceived scepticism towards fossil fuels, Mr Sarwar responded: "Yes, but there's work to do".

He noted Labour had committed before the general election to honouring previously granted licences.

Scottish First Minister John Swinney has also shifted his party's stance, abandoning the SNP's opposition to new North Sea drilling.

Mr Swinney acknowledged the conflict in the Middle East had altered "the balance of the arguments" surrounding domestic energy production.

The effective blockade of the Strait of Hormuz, he said, had created serious concerns about the UK's energy security, strengthening the case for developing both the Jackdaw and Rosebank fields located in Scottish waters.

While Swinney maintained his support for climate compatibility assessments on the projects, he conceded these would likely prove a formality and ultimately result in approval.

The position marks a significant departure from his SNP predecessors, who had fiercely criticised fossil fuel expansion despite the party's historical backing for North Sea extraction.

The Rosebank and Jackdaw projects both received initial approval under the previous Conservative government, with Jackdaw greenlit in 2022 and Rosebank the following year.

However, court rulings subsequently overturned these decisions, with judges determining that any assessment must account for the environmental impact of burning the extracted fuels, necessitating a fresh approval process.

Ms Reeves referenced this legal intervention, noting Labour's manifesto had pledged to honour existing licences before the courts invalidated the Tory government's original decisions.

The SNP's previous leaders took a markedly different view on Rosebank.

When the Shetland-based oilfield was approved in 2023, Nicola Sturgeon aligned herself with Green politician Caroline Lucas, who described the decision as "the greatest act of environmental vandalism in my lifetime".

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