The UK government is poised to announce new sanctions targeting goods and some services originating from illegal Israeli settlements in the West Bank, a move anticipated to mark a "reset" in Britain's relationship with Israel.
Foreign Secretary Ed Miliband is expected to outline the details of these trade restrictions in a statement to the House of Commons on Tuesday. The intervention follows Prime Minister Andy Burnham's pre-election commitment to adopt a tougher stance on the Israeli-Palestinian conflict, particularly in the wake of the October 7, 2023, Hamas attack on Israel and subsequent Israeli military action in Gaza.
The proposed sanctions are understood to be a direct response to controversial Israeli plans, including tenders for 1,200 homes as part of the E1 settlement project. This specific project, if realised, could effectively sever the occupied West Bank from East Jerusalem.
The anticipated announcement has already sparked significant diplomatic and domestic discussion. Prime Minister Burnham reportedly discussed the Middle East situation with US President Donald Trump during a phone call on Monday. A Downing Street readout indicated Mr Burnham emphasised "the UK’s commitment to working towards peace and security in the region" and the importance of a two-state solution. However, the readout did not disclose President Trump's specific response, with reports suggesting the Trump administration intends to issue a statement criticising the UK's move.
Work and Pensions Secretary Pat McFadden clarified that the measures are "specifically targeted" at the expansion of settlements, which are considered illegal under international law, and are not intended as a "boycott of all Israeli goods". He stressed that Israel remains an important trading partner for the UK and rejected an accusation of "Jew hate" from US Ambassador to Israel Mike Huckabee.
The policy faces criticism from within the UK and internationally. Labour MP Peter Prinsley, honorary vice-chairman of Labour Friends of Israel, expressed concerns to BBC Radio 4’s Today programme, warning Foreign Secretary Miliband that sanctions carry "a real risk of increased chances of attacks on the British Jewish community". Mr Prinsley also suggested the timing was "terrible", advocating for a delay until after the Israeli election, and feared the move could "embolden the present government of Netanyahu".
From the Conservative opposition, Shadow Home Secretary Chris Philp described the announcement as "performative posturing". Speaking on BBC Radio 4's Today programme, he questioned the practical enforceability of distinguishing goods from West Bank settlements versus other parts of Israel. While acknowledging opposition to settlements on Palestinian land as counter to a two-state solution, Mr Philp warned that the policy risks "damaging an important security relationship" with Israel.
Israel has already issued a warning of retaliation. Foreign Minister Gideon Saar stated: "If Britain acts against Israel, Israel will act against Britain." In a more extreme reaction, Israel's hard-line Public Security Minister Itamar Ben-Gvir took to X to call on Prime Minister Benjamin Netanyahu to recognise the Falkland Islands as "Argentine territory under occupation" and impose sanctions on the UK.
The government's decision to pursue these sanctions comes as tensions in the West Bank have escalated in recent months, marked by violent disputes between Israeli settlers and Palestinians. Domestically, Labour's stance on the conflict has been a sensitive issue, with the party experiencing a loss of support from some left-wing backers following its initial response to Israel’s military actions in Gaza. Prime Minister Burnham was among senior party figures who called for a ceasefire by late October 2023.
Mr Miliband is scheduled to present the plans to Cabinet at their weekly Downing Street meeting this morning before laying out the details to Parliament later this afternoon.
