Trade unions warn Labour will 'pay the price' for North Sea ban
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Ed Miliband is being urged by one of Labour’s key trade union supporters to reconsider his stance on North Sea drilling, or risk electoral repercussions in the upcoming local elections. Unite’s general secretary, Sharon Graham, criticized the Energy Secretary’s prohibition on new oil and gas exploration along Britain’s shores, labeling it as a detrimental move.

Graham cautioned that Labour’s current approach to fossil fuels could result in even more severe electoral setbacks than anticipated across England, Scotland, and Wales. Rising energy costs, exacerbated by the situation in Iran, have intensified calls for Miliband to reconsider his position on the UK’s untapped oil and gas resources.

There is an increasing push from Labour MPs for the party to permit new drilling, with reports indicating that Chancellor Rachel Reeves supports enhancing North Sea production. Additionally, GMB union’s general secretary, Gary Smith, has joined the call for a review of Miliband’s Net Zero strategy in light of the ongoing Middle East crisis.

In the wake of the Iran, which has sent energy prices rocketing, Mr Miliband is facing mounting pressure to soften his stance over the UK’s untapped oil and gas reserves.

A growing number of Labour MPs are calling on him to allow new drilling, while it has emerged that Chancellor Rachel Reeves wants to boost North Sea production. 

Gary Smith, the general secretary of the GMB union, has also called for a rethink of Mr Miliband’s Net Zero agenda amid the Middle East crisis. 

It was recently reported that Mr Miliband could be minded to approve a project at Jackdaw, a major gas field off the coast of Aberdeen. 

But his department dismissed the speculation as ‘incorrect’ and insisted no decisions had yet been made.

One of Labour's major trade union backers has told Ed Miliband to allow more North Sea oil and gas drilling or see the party 'pay the price' at next month's local elections

One of Labour’s major trade union backers has told Ed Miliband to allow more North Sea oil and gas drilling or see the party ‘pay the price’ at next month’s local elections

Sharon Graham, the general secretary of Unite, branded the Energy Secretary's ban on new oil and gas exploration off Britain's coastline as an 'act of self-harm'

Sharon Graham, the general secretary of Unite, branded the Energy Secretary’s ban on new oil and gas exploration off Britain’s coastline as an ‘act of self-harm’

Labour is braced for dismal results at elections for the Scottish Parliament, Welsh Senedd and a slew of English councils on 7 May.

Ms Graham warned, as voters face up to a worsening cost of living crisis due to the impact of the Iran war, the party’s losses could be even greater.

‘The Government’s energy policies in both Westminster and Holyrood are putting jobs and energy security at risk,’ she said.

‘This is an act of self-harm, and Labour will certainly pay the price in the May elections.

‘Unite has a clear and stark message as energy bills rocket due to the Iran war – we must keep the North Sea working and fund a concrete plan for jobs.

‘Voters can see that it is a big mistake to let go of one rope before we have hold of another.’

Mr Smith has also hit out at Labour’s Net Zero policies, warning the Government will leave a ‘terrible legacy’ if it allows domestic energy production to ‘wither on the vine’.

‘Given where we are in the world it is increasingly important… that the UK needs to take more responsibility for its energy needs for its own economy,’ he said.

‘So the policy in the North Sea and the approach has just been utter madness.’

In the wake of the Iran, which has sent energy prices rocketing, Mr Miliband is facing mounting pressure to soften his stance over the UK's untapped oil and gas reserves

In the wake of the Iran, which has sent energy prices rocketing, Mr Miliband is facing mounting pressure to soften his stance over the UK’s untapped oil and gas reserves

Scottish Labour leader Anas Sarwar supports drilling at both the Jackdaw site and a project at the Rosebank oil field north-west of Shetland.

Ms Reeves has said she would be ‘very happy’ to support drilling at Jackdaw and Rosebank because of the positive impact on ‘jobs and tax revenue’.

Henry Tufnell, Labour MP for Mid and South Pembrokeshire, has been spearheading a backbench campaign for the Government to issue new North Sea licences.

He said drilling was ‘vital for our own domestic energy security and is good for the economy with increased tax receipts and jobs’.

But one Labour MP told The i Paper there are more than 50 environmentally-minded backbenchers who will oppose a softening of the party’s stance on oil and gas.

‘There’s over 50 backbench MPs – and we know what the size of things need to be in order to give the leadership pause – who are saying: ‘Remember all the reasons why drilling for oil and gas puts you on a hiding to nothing’,’ they said.

Green industrialist Dale Vince, one of Labour’s biggest donors, told Times Radio it would be ‘wrong’ for Labour to allow fresh North Sea exploration. 

A Government spokesperson said: ‘Issuing new licences to explore new fields cannot give us energy security and will not take a penny off bills.

‘Regardless of where it comes from, oil and gas is sold on international markets, which set the price for British billpayers – making us a price taker.

‘The only way to truly protect ourselves from these price spikes is to get off the rollercoaster of fossil fuel markets.’

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