Labour has been accused of stifling investment in North Sea oil and gas after a report found the number of UK projects in the sector collapsed by 81 per cent last year. The EY UK Attractiveness Survey found this drop followed the government's ban on new drilling licences and an accelerated push towards Net Zero targets, prompting criticism from the Conservatives that "green dogma" is harming energy security and prosperity. Prime Minister Andy Burnham, who has taken over from Sir Keir Starmer, appears to be shifting Labour's stance and could approve new North Sea drilling this month, though he faces resistance both from backbenchers committed to Net Zero and from Scottish figures keen to protect the oil and gas industry.

The survey recorded just three UK oil and gas projects last year, down from 16 the year before, alongside a 51 per cent fall in energy-related foreign direct investment projects, from 55 in 2024 to 27 in 2025 — the lowest total since 2013, leaving the UK second behind France in Europe. Energy Secretary Miatta Fahnbulleh is reportedly poised to approve gas drilling at the Jackdaw field, while a decision on the larger Rosebank field is likely to be deferred. Labour's own figures suggest more than 100,000 North Sea jobs could be lost by 2050, an 80 per cent decline from 2024 levels, whereas developers argue approving Rosebank and Jackdaw could support over 3,500 jobs and generate more than £20billion.