Ed Miliband failed to back North Sea drilling to fund defence plan | Politics | News

Ed Miliband derailed plans to fund the UK’s defense plan by accelerating North Sea drilling, it has been claimed. The Treasury has reportedly found that further drilling in the North Sea would generate enough tax revenue to cover a significant part of the £18bn the Ministry of Defense is seeking for military programmes.

The plan was supported by Chancellor Rachel Reeves and presented to the Prime Minister. But reports suggest Mr Miliband has “vetoed” the North Sea proposal. The plan to boost oil and gas production was modeled by the Treasury as tense negotiations continued between Number 10 and the Ministry of Defense over the delayed defense investment plan (DIP).

A source close to Mr Miliband said: Telegram He said he was not specifically consulted about using North Sea oil and gas revenues to finance the DIP.

They claimed the only discussions between Mr Miliband and Downing Street were about cuts to his department’s capital budget.

The source said: “Ed has refused to make a decision on Rosebank and Jackdaw, despite Scottish Labor and many of us wanting it.

“We were decimated by his intransigence in the Aberdeen by-election last week.”

Speculation has centered on whether Mr Miliband could be made Chancellor under Andy Burnham.

Former Health Secretary Wes Streeting is another frontrunner for the senior job at the Treasury.

Former Defense Secretary John Healey resigned days before the tough Makerfield by-election, which Mr Burnham won.

He accused the government of not providing sufficient financing for military expenditures in the delayed DIP.

Sir Keir is determined to publish the plan before the NATO summit in early July – although this is something that could be reversed if Mr Burnham takes office.