The Government has announced a shift in its North Sea energy policy, allowing limited new oil and gas licences - but only where developments connect to existing fields and infrastructure without further exploration. The move marks a softening of Labour's previous pledge to halt new licensing entirely as part of efforts to reach net-zero emissions by 2050. Britain’s oil and gas production has sharply declined since the early 2000s, and further reductions are expected over coming decades. At the same time, the Government confirmed it will keep in place the windfall tax introduced during the energy price surge until 2030, despite strong lobbying from industry leaders who argue it deters investment and threatens jobs. Ministers maintain the tax remains essential to raise funds for the transition to clean energy, and a replacement price-linked mechanism is planned once the levy expires. The debate highlights the complex balance between economic security, climate responsibility and workforce stability.