UK Announces Tougher Stance on Israel, Plans Trade Ban on Settlement Goods

LONDON — The United Kingdom is set to adopt a tougher approach towards Israel, with Foreign Secretary Ed Miliband announcing a broad reset of Britain’s relations with the country and plans to restrict trade in goods and certain services originating from Israeli settlements in the occupied West Bank.

The measures are aimed at responding to the continued expansion of Israeli settlements and preserving the prospects of a negotiated two-state solution between Israel and Palestine. The British government has expressed concern that settlement expansion, particularly in strategic areas of the West Bank, could undermine the territorial viability of a future Palestinian state.

The proposed restrictions would cover trade involving goods and some services from Israeli settlements, including associated financing and advertising activities. The government considers the settlements contrary to international law and views their expansion as a major obstacle to lasting peace.

Miliband is also expected to reaffirm Britain’s support for Palestinian rights, international law and the establishment of a viable Palestinian state alongside Israel. The policy shift represents a significant change in the UK’s approach to bilateral relations with Israel.

The proposed measures have already drawn criticism from Israel and the United States. US Ambassador Mike Huckabee has warned that the move could have economic consequences, while Israeli officials have threatened retaliatory measures.

British Prime Minister Andy Burnham has also discussed the issue with US President Donald Trump, with Downing Street stressing the importance of preserving the possibility of a two-state solution.

The UK’s proposed policy comes amid increasingly strained relations with Israel over the Gaza conflict and Israeli settlement expansion in the West Bank. Britain’s trade relationship with Israel was valued at around £6 billion in 2025, underscoring the potential economic and diplomatic significance of the new measures.