Unions and SNP press Prime Minister Andy Burnham on energy bills, bank taxes and North Sea drilling

Demands for bank surcharge and energy relief

Trades Union Congress General Secretary Paul Nowak has called on Prime Minister Andy Burnham and Chancellor John Healey to reverse cuts to the bank surcharge ahead of next month's budget. The union body proposes lifting the surcharge from 3% back to 8%, which was reduced by the Conservative government in 2023, estimating the policy would generate £9bn over four years. The TUC plans to direct those funds toward an income-based social tariff that would lower energy bills for two-thirds of British households. A poll commissioned by the union found that 68% of respondents support taxing banks to reduce household energy costs, with 20% opposing the measure, while 56% identified the cost of living as their highest priority.

Nowak argued that banking sector profits should help ease domestic hardship after Burnham introduced an initial bus fare cap and planned a temporary VAT waiver on electricity bills starting in October.

When you've got families struggling to put food on the table, it's not unreasonable to ask them to pay a fair share.

North Sea drilling controversy and Scottish revenues

Burnham is also facing pressure regarding energy production as ministers prepare to approve the Jackdaw gas field and assess the Rosebank oil project. Environmental commentators point out that the Jackdaw development will generate 27 direct full-time jobs, while Rosebank will support 450 UK-based jobs over its lifespan, compared to 300,000 people employed across the UK net zero sector. Burnham defended tapping domestic fossil fuels to address economic strains.

There is a resource there. When people are struggling, we can't ignore that.

In Scotland, Aberdeen Central MSP Jack Middleton urged Burnham to allocate all future North Sea oil and gas tax revenues toward Scottish renewable energy. Middleton stated that Westminster has gathered over £400bn in North Sea taxation since oil discoveries began. First Minister John Swinney's administration recently committed to publishing an updated energy strategy before the 2031 Holyrood election, adopting the view that domestic drilling supports energy security.

Clash over migration rules and social care

Beyond fiscal and energy policy, the TUC has challenged Home Secretary Shabana Mahmood's proposed migration reforms. The Home Office consultation proposes extending the waiting period for indefinite leave to remain from five years to 15 years for more than 300,000 low-paid workers, including care staff recruited after the Covid pandemic. Nowak cautioned that the proposal threatens the care sector, which currently registers 111,000 staff vacancies.

I think it is fundamentally unfair to change the rules when people came to this country with one set of expectations.

Nowak warned that lengthening residency requirements complicates family life and could strengthen support for populist parties like Reform UK. Labour supporters of the plan maintain that longer residency requirements address public concerns regarding immigration.

EU relations and autumn budget outlook

Trade and European relations present another operational challenge for the Burnham administration. While Burnham stated that he seeks an agreement with the European Union to add percentage points to national growth, Downing Street reaffirmed its commitment to manifesto red lines that rule out rejoining the EU single market, entering a customs union, or restoring free movement of people. European Union officials noted that these constraints make broad sector-by-sector deals unworkable in the near term, suggesting negotiations may not advance before a planned 2027 summit. The diplomatic deadlock leaves ministers to focus primarily on domestic policy decisions as the autumn budget approaches.