British Secretary of State for Energy Security and Net Zero Edward Miliband .EPA/ANDY RAIN

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Eight ex-UK energy ministers urge government to reverse North Sea oil and gas policy

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A cross-party group of eight former UK energy ministers has written to Prime Minister Keir Starmer calling for an urgent policy reversal on North Sea oil and gas.

In the letter they warn that current restrictions and taxes are undermining energy security with minimal impact on global emissions.

Reported in the Financial Times yesterday, the signatories express “deep concern” over the accelerating decline in domestic production.

They argue that the fall stems not primarily from geological exhaustion but from successive policy choices by both Labour and Conservative governments.

Key demands include: Ending the Energy Profits Levy (EPL, or windfall tax) on the oil and gas sector sooner than its scheduled 2030 expiry date; dropping the Labour Government’s ban on new exploration licences in the North Sea; and reforming fiscal and regulatory settings to sustain homegrown production.

The group emphasised: “Energy security is national security. Without urgent reform we will become increasingly reliant on imported liquefied natural gas.”

Among the signatories are former Conservative energy secretary Amber Rudd and former Labour business and energy secretary John Hutton.

The cross-party composition spanning Labour, Conservative and Scottish National Party (SNP) figures underscores bipartisan unease with the trajectory under the current administration.

Former Conservative energy minister Charles Hendry publicly highlighted his involvement, noting the coalition’s breadth.

The warning comes amid heightened global energy market volatility, including sharp rises in oil and gas prices following escalation in the Middle East conflict, with disruptions in the Strait of Hormuz and related insurance spikes.

Proponents frame the call as pragmatic and say that maintaining North Sea output could reduce import dependence, generate higher tax revenues, lower emissions per unit of energy compared to imports from less-regulated producers. It could also support jobs in a sector facing rapid decline forecasts from the North Sea Transition Authority, they say.

Critics of the current policy, including industry voices and some Scottish Government figures (who have separately urged scrapping the EPL in the upcoming Spring Statement), argue it risks irreversible deindustrialisation and jeopardises a just transition to renewables.

Business lobby groups have put forward similar arguments, while the GMB trade union has also joined the call for a policy change.

The Labour Government has maintained its manifesto commitment not to issue new licences for unexplored fields. It is focusing instead on maximising existing infrastructure, accelerating offshore wind and establishing structures such as the North Sea Future Board for a managed transition.

Current energy secretary Ed Miliband has described the approach as pragmatic, balancing net zero goals with security needs.

No immediate response from Downing Street or the Department for Energy Security and Net Zero had been issued at the time of reporting, although the letter adds to mounting pressure amid Treasury discussions on potential early EPL adjustments.

Proponents of continued production argue that oil and gas still account for around 75 per cent of total energy consumption in the UK, meaning that Britain is more dependent on imports as domestic production declines.