Cabinet war rages over Rosebank as Chancellor's Budget 'assumes North Sea oil scheme will be approved'

Published: 06:42 EDT, 28 October 2026 | Updated: 07:28 EDT, 28 October 2026 John Healey is set to inflame Cabinet tensions over the Rosebank oilfield by basing the Budget's economic calculations on the assumption that it will be approved and will generate major tax revenues.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.Ms Fahnbulleh, seen as a green minister in the mould of Ed Miliband, 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 Andy Burnham, who is also pro-drilling.Mr Healey is due to use 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 some projects yet to be approved 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.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 firmsThe 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'.