The approval of Jackdaw is a welcome development for the North Sea, supporting domestic gas production, skilled employment and the wider supply chain.

At a time when energy security and affordability remain major concerns for households and businesses, making responsible use of our existing domestic resources has an important role to play. Jackdaw can help offset some reliance on imported gas, although its contribution to energy prices and the UK's wider energy requirements must be kept in perspective.

One project, with a relatively limited production lifespan, is not going to resolve the UK's wider energy challenges. Jackdaw has dominated much of the political debate around the North Sea, but its approval will not fundamentally alter our exposure to international gas markets or address the structural issues affecting energy costs. We should recognise the positive contribution of the development without overstating what any individual project can achieve.

The government's accompanying announcement of a £2 billion Energy Wealth Fund, intended to reinvest revenues from North Sea oil and gas into renewable and low-carbon energy, is an encouraging recognition that conventional energy production and the transition to cleaner technologies need to work hand in hand. It is a sensible principle and one that supports our longstanding view that energy security, economic growth and decarbonisation should be complementary objectives. However, the success of the fund will ultimately depend on how effectively it attracts private capital and translates financial commitments into deliverable projects and lasting economic value.

We have consistently argued that energy policy needs to sit above politics. Major energy and infrastructure investments require confidence in fiscal, regulatory and policy arrangements over decades, not parliamentary cycles. That applies equally to the future of the North Sea and the significant opportunities in offshore wind, electricity networks and emerging technologies. The forthcoming Budget presents an opportunity to establish a more stable, competitive and coordinated investment framework, rather than relying on individual approvals or funding announcements to provide periodic boosts to confidence.

Our expert advisers

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