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Radical economist Miatta Fahnbulleh to decide North Sea drilling fate as Burnham faces pressure

New energy secretary Miatta Fahnbulleh, a radical economist, will oversee North Sea drilling amid fears of a U-turn on Labour's ban.

Radical economist Miatta Fahnbulleh to decide North Sea drilling fate as Burnham faces pressure

The future of North Sea oil and gas now rests with the UK’s new energy secretary, Miatta Fahnbulleh – a radical economist who has previously called for a total end to new drilling in the basin. Her appointment comes as Prime Minister Andy Burnham faces mounting speculation that he may reverse Labour’s ban on exploration licensing, a policy introduced under Keir Starmer last year.

Before Burnham had even been inaugurated, reports claimed he was preparing to announce plans for new oil and gas drilling. Much of the speculation revolves around two major fields off the coast of Scotland – Rosebank and Jackdaw – approved in 2022 and 2023 by the Conservatives, but overturned in 2025 after a legal challenge. Donald Trump has also waded in, posting on Truth Social that he had discussed North Sea oil with Burnham, and urging the UK to “drill baby, drill”.

New energy secretary Miatta Fahnbulleh, a radical economist, will oversee North Sea drilling amid fears of a U-turn on Labour's ban.

Yet Lucy Powell, Labour’s deputy leader, sought to calm environmentalists’ concerns, confirming that Burnham would stick to the party’s manifesto. “We’ve been clear with tiebacks and other measures that we want to see North Sea gas and oil continue to thrive,” she said, adding that “energy security and lower bills will only come by us not continuing to rely on fossil fuels but building the cheaper, renewable energy of the future.” Tieback arrangements would allow new drilling close to existing sites without technically breaking the manifesto.

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The woman now responsible for navigating this tension is Miatta Fahnbulleh, elected MP for Peckham in July 2024. A graduate of Oxford with a PhD from the London School of Economics, she served as chief executive of the New Economics Foundation from 2017 to 2023 – a think-tank that coined the phrase “Green new deal” and has called for a total end to new drilling. The Guardian has described her as a “radical economist” who is “outspoken about the climate crisis”.

Fahnbulleh’s appointment comes at a time when trust in Labour’s promises is frayed. Keir Starmer, now former prime minister, was elected to the Labour leadership on a platform that included increasing income tax for the top 5 per cent of earners, abolishing Universal Credit, supporting the abolition of tuition fees, opposing illegal wars, abolishing the House of Lords, and lowering energy bills by £300. Since taking power, his government increased taxes by £62bn – a far cry from those pledges. As one analysis put it, Starmer’s dishonesty was “colder, more ruthless and specific” than Boris Johnson’s.

Burnham, who has promised to “restore stability” and usher in a “new era”, now faces the same test of credibility. With Fahnbulleh at the energy helm and a manifesto commitment to phase out new exploration already in place, the question is whether the government will hold the line – or yield to pressure from Trump, drilling companies, and the lure of tieback loopholes.

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