MPs have been told that only a “complete whacko” would scale back North Sea oil and gas production, exposing the UK to foreign supplies and denying itself billions in tax revenues.

A Tory move to grant licences to the Jackdaw and Rosebank fields was thrown out in a Commons vote, prompting shadow energy secretary Claire Coutinho to accuse Labour whips of telling MPs to “vote to shut down the North Sea”.

The Commons voted 108 to 323 against the proposed amendment to the King’s Speech which introduced the Energy Independence Bill to accelerate the development of renewable energy.

The vote came as the UK government loosens strict sanctions on Russian oil refined into diesel and jet fuel in third countries as prices rise. Some sanctions on the transport of Russian liquefied natural gas (LNG) have also been lifted.

Ms Coutinho said the Government’s position on domestic oil & gas would leave the UK more reliant on higher-emission gas from Qatar or the US and more exposed to imports from Norway.

She added: “This is the single greatest act of industrial self-harm we have seen in a generation. Only a complete whacko would respond to a supply shortage by shutting down their own oil and gas industry.”

Energy Secretary Ed Miliband defended the government’s policy, telling MPs £90 billion of private investment had gone towards clean energy since the 2024 general election.

“We’re not in favour of a ‘turning off the taps’ position but, I’ll just be honest with the House, nor are we in favour of a drilling every last drop,” said Mr Miliband.

The debate came just weeks before voters go to the polls in Aberdeen South where the issue will be a hot topic.

Ahead of the Common’s vote, new SNP Westminster leader Dave Doogan said: “The Labour government must scrap its punitive tax on Scotland’s energy, which has destroyed thousands of Scottish oil and gas jobs and put our energy security at risk.

“Westminster is treating Scottish oil and gas jobs as expendable. The Tories introduced this damaging tax, and the Labour Party has continued it. They must both take responsibility and apologise for taking a wrecking ball to Scottish jobs and our vital energy industry.

“For more than 50 years, successive Labour and Tory governments have taken over £400billion of Scotland’s energy wealth to Westminster and failed to deliver the investment Scotland needs. That must end now.

The Energy Secretary doubled down on Labour’s green priorities, saying: “While we remain exposed to the fossil fuel rollercoaster, we are deeply vulnerable as a country

“Our sovereignty, our security and the British people’s living standards are undermined by this dependence and exposure because – for a simple reason – we do not control the price of oil and gas, which is set on international markets.”

UPDATE 20TH MAY: Chancellor to stop ‘meritless’ delays to energy projects

Chancellor Rachel Reeves is to introduce sweeping reforms that will give the UK parliament the authority to approve critical energy schemes in England and better protect infrastructure projects from judicial review.

The proposed changes – on which a policy note is published today – are intended to reinforce the UK’s energy security and avoid costly delays caused by objections.

The headline proposal would allow parliament to designate and approve the most important clean energy projects as being of ‘Critical National Importance’ (CNI), reducing the exposure from judicial review on all but human rights grounds.

This would help projects like new power stations and offshore wind farms.

For all other nationally significant infrastructure – including transport and water projects – the government will introduce a “fixed legal challenge window”, at the end of which the planning consent could be updated to address any legitimate issues.

This would reduce the potential grounds for judicial review – and where any continue to be pressed, courts would be able to make use of existing reforms to deny permission where it was clear the claim was without merit.

The government said it “seeks to end the practice of serial meritless legal challenges clogging up the courts”.

Of 167 Development Consent Order decisions made since 2008, just six were quashed following a challenge – with many more failed processes costing developers, taxpayers and the economy billions in delays and wasted time.

The new CNI route would apply exclusively to clean energy projects, “reflecting the national urgency of the UK’s need to get off the fossil fuel rollercoaster. All other major infrastructure projects would benefit from the fixed-window route.”

The government is also expected to allow promoters of smaller energy projects to apply directly to the Planning Inspectorate, rather than having to go through local councils. This will support faster decision-making on important generation and transmission projects that all contribute to our country’s energy resilience.

A Treasury spokesperson said: “For too long, vital infrastructure delivery has been delayed by judicial reviews of projects the country needs. The Chancellor won’t stand for it any longer and is bringing forward bold changes to support delivery.

“She is clear that Parliament must take back control – to get Britain building the power plants, wind farms and grid connections that will bring bills down, strengthen our energy security, and deliver growth in every part of our country.”