The Labour Government has announced a major package of measures aimed at defending the two-state solution, including plans to ban trade in goods from illegal Israeli settlements and strengthen sanctions against those involved in settlement activity and violence against Palestinians.
The measures were announced on Monday as the Government described the situation in Palestine as a “moral emergency” and warned that the prospect of a viable Palestinian state was under growing threat.
Prime Minister Andy Burnham’s Government said its policy remained centred on “freedom, security and self-determination for both Palestinian and Israeli people”, while making clear that it would not “stand by” as settlement expansion and violence continued.
The announcement was accompanied by a joint statement from the UK and a group of international partners, including France and Canada, reaffirming their commitment to a two-state solution and confirming plans for restrictions on trade with settlements regarded as illegal under international law.
Labour announces settlement trade ban
Under the Government’s plans, Britain will move to ban imports of goods produced in Israeli settlements in the occupied Palestinian territories.
Measures will also be taken against services connected to settlement activity, while new powers are planned to target individuals and companies that support, facilitate or profit from illegal settlements.
The Government has additionally pledged to prohibit the advertising or promotion in Britain of land and property located in illegal settlements.
Foreign Secretary Ed Miliband, setting out the policy in Parliament, said the Government regarded Israel’s continuing occupation of Palestinian territory as unlawful and argued that settlement expansion was undermining the possibility of a viable Palestinian state.
The Government said Britain would move forward alongside France and Canada, following action already taken by countries including Ireland, Spain, Belgium, the Netherlands and Norway.
Tougher action against extremist settlers
Labour also announced further sanctions targeting extremist Israeli settlers accused of supporting or inciting violence against Palestinian communities.
The Government said it would strengthen the existing Global Human Rights Sanctions regime to pursue individuals who breach international humanitarian law, both in the Palestinian territories and elsewhere.
The move comes amid mounting international concern about settlement expansion and levels of settler violence in the West Bank.
In their joint statement, the UK and its international partners called on the Israeli Government to halt settlement expansion, ensure accountability for settler violence and investigate allegations involving Israeli forces.
Burnham Government stresses distinction between Israel and its government
The Labour Government has stressed that the measures are directed at the policies of the Israeli Government and illegal settlement activity, rather than at Israeli citizens more broadly.
Its statement also reiterated unequivocal condemnation of Hamas’s 7 October 2023 attacks and recognised Israel’s legitimate security concerns.
At the same time, Labour said the humanitarian situation in Gaza remained unacceptable, pointing to continuing civilian deaths, restrictions on humanitarian aid and the expansion of territory controlled by the Israeli military.
The Government said its objective remained a future in which a safe and secure Israel exists alongside a safe, sovereign and viable Palestinian state.
New sanctions against Iran
Alongside the measures relating to settlements, Labour announced tougher economic sanctions against Iran and further action against Iranian-backed proxy groups, including Hezbollah.
The Government has introduced legislation designed to expand trade and financial restrictions on Iran following the reimposition of UN sanctions linked to its nuclear programme.
The decision is intended to underline the Government’s position that supporting Palestinian rights and challenging illegal settlement activity can go alongside a firm commitment to Israel’s security and action against threats posed by Iran.
A significant change in British policy
The measures represent one of the strongest steps taken by a British government against Israeli settlement activity.
Although the direct economic impact of the settlement trade ban is expected to be limited compared with the broader UK-Israel trading relationship, its political significance is considerable.
The Government argues that settlement expansion — particularly plans around the E1 area of the West Bank — risks making a contiguous Palestinian state increasingly difficult to achieve.
The policy has already prompted strong criticism from the Israeli Government and some US political figures, while receiving support from Labour MPs and international partners who have called for greater pressure to protect the two-state solution.
This Labour Government will not stand by
The central message from Labour is that Britain should use its diplomatic and economic influence where international law and the possibility of lasting peace are at stake.
The Government said:
“The only route to security for both peoples is a safe and secure Israel and safe and secure Palestine living side by side in peaceful co-existence.”
For Burnham’s Government, the announcement is being presented as an attempt to combine a clear defence of Palestinian rights and international law with continued support for Israel’s security and a negotiated two-state solution.
The message from Labour is that Britain will not stand by as the possibility of two states is eroded — and that protecting both Palestinian self-determination and Israeli security must remain at the centre of British foreign policy.
