Oil and gas Crackdown on fossil fuel exploration is confirmed

The government has ruled out new North Sea oil and gas exploration or lower taxes for fossil fuel companies as it struggles to protect workers from the industry's collapse.

- Jillian Ambrose

In a new strategy paper Ed Miliband confirmed the crackdown on new North Sea exploration - though the energy secretary will still allow new offshore fossil fuel projects to move ahead as long as they are linked to existing fields.

The strategy was released with Rachel Reeves's budget statement, which ended months of speculation over the future of the North Sea industry by confirming the government's intention to ban new oil and gas licences to explore new fields, and keep tax rates in place.

Labour swept to power with a promise to end new exploration drilling and a pledge to work with oil and gas companies to manage the North Sea's remaining lifespan.

The government hopes that by allowing "tieback" projects that are linked to existing schemes it can strike a balance between protecting thousands of jobs and meeting the UK's climate commitments.

Miliband said: "The North Sea's workers and communities have helped power our country and our world for decades. This is our plan to ensure they continue to do so for many decades to come."