The new Prime Minister, Andy Burnham, has made a significant move in his first days in office by speaking to Donald Trump, a development that has sparked speculation about a potential softening of Labour's stance on fresh North Sea oil and gas operations.
The US President appears to be taking a keen interest in the new occupant of No 10, particularly with regards to the UK's energy sector. This comes amid hints that Mr Burnham may reverse the party's ban on new drilling, a move that could have significant implications for the thousands of UK firms in the offshore supply chain.
Yesterday, it was reported that the Prime Minister was preparing to announce plans for new drilling at the Jackdaw and Rosebank fields off the coast of Scotland, two projects where licences have already been granted but which have been mired in legal challenge.
The potential for new drilling in the North Sea has been welcomed by business leaders in Aberdeen, the UK's oil and gas capital. Oil and gas supports an estimated 13 per cent of jobs in Aberdeen City, and a reversal of the ban could provide a much-needed boost to the local economy.
However, caution is warranted. Labour's deputy leader, Lucy Powell, has declined to confirm reports of a change in policy, suggesting that any decision would be a change of emphasis rather than a full-scale reversal. Additionally, ministers could potentially wave the projects through without affecting the wider ban on new exploration licences.
The episode provides an early read on the new Prime Minister's approach to business, with Mr Burnham signalling room for movement on tax and a business rates cut for high street firms. A pragmatic turn on the North Sea would suggest a more centre-ground approach to governance.
The potential implications of a Prime Minister with the President's ear are also significant. A new Prime Minister who has the support of the White House is better placed to defend UK exporters in any future tariff skirmish, a development that could have far-reaching consequences for British businesses.
While nothing is confirmed, and No 10 is saying little about what the two men discussed, the fact that a new Prime Minister's first calls include the White House, and the White House is talking about British oil, suggests that the direction of travel has changed.
