𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Keir Starmer has been urged to open Britain’s biggest oil field to stop energy bills from soaring. Critics say the Middle East conflict should act as a “wake up call” for the Prime Minister to rethink his policy in the North Sea.

The warning comes as dire figures show that the economy stagnated in January – even the outbreak of war in Iran, which has triggered a major energy shock. Analysts said the overall economic picture is “subdued”, describing flatlining GDP as a “disappointing start to the year”. Fears are also mounting that the UK could tip into recession as the conflict continues to bite. The figures will be grim reading for Rachel Reeves, who has pinned her hopes on improving economic growth.

She said the gloomy data comes “amid an uncertain world” but insisted, “Our economic plan is the right one, but I know there is more to do.”

The Chancellor and Energy Secretary Ed Miliband held an emergency Downing Street summit with petrol retailers over soaring fuel prices yesterday (Fri) as the desperately try to get a grip on the situation.

But with the UK struggling to meet its energy needs, there are mounting calls for the government to approve two new gas developments – the Rosebank and Jackdaw fields – and allow further exploration in the North Sea.

Writing in the Daily Express, Robert Jenrick said a Reform UK government would “unapologetically drill” in the North Sea for oil and gas, “bringing back good jobs to the UK.”

“It is economic lunacy to ignore our rich energy reserves,” he adds.

Ineos boss Sir Jim Ratcliffe has also called for “rapid reassessment of our priorities” on the North Sea.

“Nothing is more important for national security than energy independence,” he wrote in the Telegraph.

Sir Jim warned that without reliable energy in a conflict situation, running hospitals, transportation, manufacturing and basic essentials like heating and lighting are jeopardised.

“Without a reliable supply of energy, the country is crippled,” he added.

His intervention comes amid pressure on the Government to do more to support the country as war in the Middle East sends oil and gas prices higher.

The price of petrol has already risen at its fastest pace since the 2022 invasion of Ukraine and analysts say the price cap on household bills could jump by hundreds of pounds in the summer.

Shadow Chancellor Sir Mel Stride, also called on the government to change course on drilling in the North Sea.

“Labour’s economic mismanagement has left us vulnerable to the potential impacts of events in the Middle East,” he warned.

“They must now axe the Fuel Tax, back North Sea Oil and Gas and come forward with a proper plan to cut the deficit and get the benefits bill down.”

Sir Jim is one of a growing number of senior UK business and industry leaders calling on Sir Keir and Mr Miliband to change course.

Greg Jackson, the founder and chief executive of Octopus, urged the Government last week to “use what’s available from the North Sea”.

Offshore Energies UK, the trade body for the UK oil and gas industry, has stepped up its campaign to replace the windfall tax.

It says the 78% flat rate total tax imposed on UK oil and gas profits is driving companies away and destroying 1,000 jobs a month.

Ms Reeves told MPs on Wednesday that “nothing is off the table” when it comes to supporting households and businesses on energy costs.

Ms Reeves told MPs on the Treasury select committee: “If prices remain at an elevated level, revenue would come in but of course that revenue would be needed to help with people’s bills.”

Mr Miliband has yet to approve the Rosebank field, which he described as “climate vandalism” in opposition.

A decision is said to be imminent.

The Rosebank field is the largest undeveloped oil and gas field in British waters. It is estimated to contain around 300 million barrels of oil.

Jackdaw, 150 miles east of Aberdeen, could provide enough gas to heat 1.4 million UK homes, developer Shell has said.

Economic growth had already lost momentum in the second half of last year as consumers, anxious about possible tax increases and rising unemployment, held back.

In the Spring Statement in March, the Office for Budget Responsibility (OBR) – the government’s official forecaster – cut its prediction for how much the UK’s economy would grow this year to 1.1% from 1.4%.

Yael Selfin, chief economist at KPMG UK, said growth was “likely to remain elusive”.

“The UK economy started the year on the back foot and activity is expected to weaken further amid sharply rising energy prices,” she said.