Chancellor makes awkward Budget gaffe about Labour Cabinet minister amid row over North Sea oil and gas drilling

Published: 10:42 GMT, 28 October 2026 | Updated: 00:10 GMT, 29 October 2026

John Healey made an awkward gaffe about a Labour Cabinet minister during his Budget amid claims they are at loggerheads over whether to allow fresh oil exploitation in the North Sea.

The Chancellor and Energy and Net Zero Secretary Miatta Fahnbulleh are at odds over whether to approve the Rosebank oil field west of the Shetlands.

Mr Healey is said to want to push ahead with it, while she is reported to be siding with opponents of the planned exploitation.

In the Commons today, the Chancellor attempted to praise the Energy Secretary for last week approving a separate proposal to allow gas drilling in the Jackdaw field off Aberdeen.

But to cheers from the Conservatives  - and a grin from Ms Fahnbulleh - he instead congratulated her for having 'opposed' it.

It came shortly after Andy Burnham appeared to use Prime Minister's Questions to show his support for Rosebank being green-lit. 

Asked about the row by Reform MP Danny Kruger,Mr Burnham said: 'You're right in pointing to the fact that use of our reserves can support and accelerate a clean energy future. 

'And that very much was the logic behind the decision that the government announced on Jackdaw last week.' 

While the Government has approved the Jackdaw gas field in the North Sea, Energy Secretary Miatta Fahnbulleh has yet to rule on the larger oil project west of the Shetlands

The Conservatives called for measures including the approval of Rosebank, the end of Labour's ban on new North Sea licences and the scrapping of the energy profits levy on oil and gas firms

Last week Ms Fahnbulleh fired shots at the Treasury, telling reporters in Westminster she alone would decide its future, not the Chancellor or Prime Minister

While the Government has approved the Jackdaw gas field in the North Sea, Ms Fahnbulleh has yet to rule on the larger oil project.

Seen as a green minister in the mould of Ed Miliband, she has signalled that she is less inclined to allow it to go ahead due to a lesser impact on helping cut energy bills.

Last week she fired shots at the Treasury, telling reporters in Westminster she alone would decide its future, not the Chancellor or Prime Minister.

Mr Healey used his Budget to set out how tax revenues from North Sea oil and gas will be funnelled into a new energy wealth fund, backed with an initial £2billion, which will be used to invest in renewable and low carbon projects. 

But it was reported today that North Sea Transition Authority revenue numbers, that are used by the Office for Budget Responsibility and fed into Budget documents, assume Rosebank will go ahead.

It could also raise legal questions, with the Energy Secretary having a 'quasi-judicial' role in deciding whether Rosebank can go ahead.

Tessa Khan, executive director of Uplift, said: 'While Rosebank's revenue has been included in official tax forecasts for years, we are deeply concerned by reports that Treasury calculations may assume a decision on Rosebank has been made. 

'This would suggest that the government is approaching the decision with a pre-determined view, which would render any approval unlawful.'

The Conservatives called for measures including the approval of Rosebank, the end of Labour's ban on new North Sea licences and the scrapping of the energy profits levy on oil and gas firms.

Shadow energy secretary Andrew Bowie said: 'Working families need lower energy bills. They were promised £300 off by Labour at the last election, but in reality they have risen by £367.

'Yet instead of taking the tough decisions needed to get costs down for everyone, John Healey is contemplating another bailout for Benefits Street, leaving hardworking families high and dry.'

Last week Ms Fahnbulleh addressed reports that suggested that the Prime Minister or Chancellor would ultimately say yes or no to a scheme that could secure thousands of jobs.  

'Because it is so contested, process really matters and the last government learned that because they didn't do the process properly and that is why we have had this massive delay because it was contested and it got turned over in the courts,' she said.

'Ultimately only I can make that decision. I really enjoyed reading bits of the media saying ''Andy is deciding this, John is deciding that'' .. actually only I can make that decision and the framework is really tight so even my spads (advisers) don't see the documents, they don't know the decisions I make'.