Labour Rebels Back Energy Secretary in Rosebank Dispute

A group of Labour backbenchers is lobbying Prime Minister Andy Burnham and Chancellor John Healey to leave the Rosebank oilfield decision with Energy Secretary Miatta Fahnbulleh. The MPs are pushing to prevent cabinet colleagues from overruling the energy department’s final call on the project.

The Treasury has already factored in approximately £500 million in tax revenue from the Rosebank scheme in its forecasts. These figures extend to the end of the current parliament. Treasury officials stated on Wednesday that the Office for Budget Responsibility has included these estimates since 2019. They maintained that including the revenue in forecasts does not stop Fahnbulleh from blocking the development.

Sources close to Healey indicate he supports the scheme. Some government figures believe Burnham also wants the project to proceed. Burnham promised a pragmatic approach to North Sea drilling last week when approving the Jackdaw gasfield. On Wednesday, he told the Commons that using reserves can accelerate a clean energy future. He insisted the final decision on Rosebank rests solely with Fahnbulleh.

Fahnbulleh’s parliamentary aides circulated a memo to MPs this week. The document states that the energy secretary is the only decision maker in the quasi-judicial process. It clarifies that no other cabinet member or minister has a role in the decision or sees the advice on it. The memo noted that no final decision has been made yet.

Catherine Fookes, a Labour member of the energy select committee, said approving Rosebank would blow a hole in the party's green credentials. She stated that a group of MPs is making it clear to leadership that this should be Fahnbulleh’s decision. Another MP warned that if Healey pushes through the scheme, there will be blood. They described the approach as economically shortsighted and politically explosive.

Clive Lewis, a Labour MP, argued that the government cannot claim global climate leadership while approving new oilfields based on penciled-in tax receipts. He noted that these receipts are currently operator estimates rather than actual Treasury revenue. Areeba Hamid, co-executive director of Greenpeace UK, said approving new drilling leaves public services hostage to future oil prices. She added that taxpayers remain on the hook for decommissioning costs for decades.

Analysis from the campaign group Uplift suggests the tax take from Rosebank may be limited. The group found that tax breaks and incentives for development and decommissioning could outweigh the revenue. MPs expect a parliamentary rebellion on Rosebank. Unlike Jackdaw, where gas was for domestic consumption, Fookes said the case for Rosebank is different. She noted that the party was quiet over Jackdaw but is now vocal about Rosebank.