THE last time there was a Labour government in Westminster and an SNP government in Holyrood was 18 years ago. That was in the middle of a financial crisis and only lasted two years. 2010 was the first time that a Scottish government had to deal with a Tory UK government.

Now there is a Labour government back in Westminster, is there clear red water between Labour and the SNP?

On January 30 the Court of Session in Edinburgh ruled that the consent that had been given for new Scottish oil and gas fields, Rosebank and Jackdaw, was unlawful and that their owners must seek fresh approval from the UK government before production could begin.

When Rosebank was given approval in 2023, under the Conservative government, Stephen Flynn MP, SNP leader in Westminster, said that if the UK government was considering oil and gas projects “through the prism of energy security, net zero, jobs, opportunities and concurrent renewables investment … then of course it should go ahead … Where I have concerns is I don't think the UK government is looking at projects through that prism.” 

Keir Starmer at that time confirmed that Labour would not revoke the licence for Rosebank if it were to win the election. He said that allowing the North Sea exploration to go ahead would provide “the stability that we desperately need in our economy.” So, both parties were giving mixed messages.

The ruling last week was based on the failure of the environmental assessment to take into account the climate impact of burning the fuel the fields would produce. It seems likely that approval will be renewed. In fact, the judge said they could continue to work on the fields up to the point where oil and gas were extracted.

In a statement, the Department for Energy Security and Net Zero said the consultation on the environmental impact was now complete and it would respond to it as soon as possible “to provide stability for industry, support investment, protect jobs and deliver economic growth.”

“Our priority,” said the statement, “is to deliver a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations, which drives towards our clean energy future of energy security, lower bills and good, long-term jobs.”

The SNP in Scotland is reconsidering its stance on oil and gas exploration and may no longer oppose new projects. Kate Forbes said in June last year that the party would consider new licences to drill in the North Sea on a “case-by-case” basis. 

First Minister John Swinney said, on the day of the Rosebank and Jackdaw ruling, that the Scottish government would “reflect carefully” on the court’s decision but that he had not yet been able to analyse it “in detail.”

What neither government will acknowledge is that there is little benefit coming to Scotland or the wider UK from the Rosebank or Jackdaw projects. The developers are receiving billions of pounds in tax breaks from the UK government but few jobs are being created in the UK: the drilling ship required, for example, is being built in Dubai.

Both governments share a neoliberal underpinning to their economic policies. When this is applied to energy, as it has been since the 1980s, it has resulted in the UK being particularly exposed to global energy price shocks even though it has oil and gas fields. There are massive profits to be made in the production, sale and distribution of oil and gas, but unlike Norway, oil and gas are not state owned and profits have gone overseas.

The ownership of the UK renewable energy industry suffers the same plight as fossil fuels. A significant portion is owned by foreign companies, including Danish, Swedish, and Norwegian state-owned companies. Other players are ScottishPower, owned by the Spanish company Iberdrola and Drax Group which is owned by, among others, BlackRock. 

Green energy infrastructure, including wind turbines and solar panels, tends to come from China, the US and Europe. Most of the manufacturing capability in Scotland was previously bought by foreign buyers and closed down.

Fuel poverty has shot up since the energy crisis in 2021 and has been made worse with the sudden withdrawal of the Winter Fuel Allowance. Age Scotland has reported that 37 per cent of older households are in fuel poverty and 25 per cent are living in extreme fuel poverty. Consumer Scotland report that than one in 12 (9 per cent) households in Scotland are in energy debt.

Currently going through the UK Parliament is the Great British Energy Bill. It will establish Great British Energy as a publicly owned and operationally independent energy company. Its primary objective is facilitating, encouraging and participating in the production, distribution, storage, and supply of clean energy; the reduction of greenhouse gas emissions from energy produced from fossil fuels; improvements in energy efficiency and measures for ensuring the security of the supply of energy. 

What it will not do is be a producer or provider of renewable energy; it will only facilitate its production. It is unclear exactly who or how many will be employed and what their roles will be. It claims to want community involvement but there is no evidence that this is a priority. 

The campaigning group We Own It argues that Great British Energy, as a publicly owned company, should directly build, own and operate renewable energy generation projects and should aim for a 100 per cent permanent stake in these projects so that the British public can benefit from them 100 per cent. At the very least, they argue, it should have a 50 per cent controlling and permanent stake in every project.

Meanwhile the Scottish and UK governments have come to an accord over GB Energy. A collaborative agreement between the Scottish government and UK Department for Energy Security and Net Zero (DESNZ) was published in October 2024 which stated that “the Scottish government and DESNZ have a shared objective in ensuring that Great British Energy is set up to deliver effectively and maximise the benefits of its activities in Scotland.”

From the Labour government’s side, it is attempting to amend its own Bill next week. The minister has written to peers stating that “during discussions with all of the devolved governments, the case has been made … that the current requirement for the Secretary of State to consult with the devolved governments should be changed to a requirement to obtain the consent of the devolved governments before including any references to matters within devolved competence in a statement of strategic priorities.”

This is a big change from the Conservative government’s heavy-handed treatment of devolved administrations during legislation such as the Internal Markets Act. On this issue, at least, the SNP won’t be able to point the finger at Westminster. 

Meanwhile fossil fuels will continue to be extracted for probably decades to come. This is part of the “drill baby drill” approach that has to be challenged worldwide.

Pauline Bryan is a Labour peer.