UK weighs raft of measures against Israel as pressure grows for action to match rhetoric

The British government is preparing a series of measures targeting Israel’s illegal settlement enterprise, including a ban on settlement goods, further sanctions and possible restrictions on arms exports, according to a report by Middle East Eye.

Multiple Whitehall and civil society sources revealed that Prime Minister Andy Burnham’s government is expected to announce new policies after parliament returns from its summer recess in September, although discussions remain ongoing and no final package has been made public.

Foreign Secretary Ed Miliband is said to be pushing for tougher measures and has consulted civil society organisations over the government’s approach. Among the options under consideration are sanctions against companies and organisations linked to settlements in the Occupied Palestinian Territory, as well as further measures against individuals involved in the settler movement and potentially additional Israeli ministers. Miliband became foreign secretary on 20 July.

Read: Burnham admits Labour ‘got it wrong’ on Gaza as pressure grows for full break with Israel

While such measures would mark a shift from the policies pursued under former Prime Minister Keir Starmer, many will see the change as the bare minimum required of Britain in light of its obligations under international law.

Israeli settlements in the Occupied Palestinian Territory are illegal under international law. In its landmark advisory opinion of 19 July 2024, the International Court of Justice (ICJ) ruled that Israel’s continued presence in the Occupied Palestinian Territory is unlawful. It said Israel must bring that presence to an end as rapidly as possible, cease all new settlement activity and evacuate settlers from the occupied territory.

Crucially for countries such as Britain, the Court also found that all states have an obligation not to recognise as legal the situation created by Israel’s unlawful presence and must not provide aid or assistance that maintains it. States must also distinguish, in their dealings with Israel, between Israeli territory and the Occupied Palestinian Territory.

Against that legal backdrop, banning goods produced in settlements, stopping financial support for the settlement enterprise and acting against entities that sustain it are not viewed as extraordinary punitive measures. They are basic steps towards ensuring that Britain does not economically or materially support an unlawful situation which the world’s highest court has said must be brought to an end.

In another sign of the new government’s intent to sanction organisations involved in the illegal settlement enterprise, Britain’s Charity Commission last week opened a statutory inquiry into concerns that UK charitable funds have been channelled to illegal Israeli settlements.

The regulator is initially examining eight unnamed charities and may widen the investigation. The inquiry followed a complaint by Labour MP Melanie Ward alleging that 32 charities registered in England and Wales had transferred at least £28 million (approximately $37.8 million) to illegal settlements. Concerns were also raised that some of those donations may effectively have received taxpayer support through Gift Aid.

The Charity Commission said it will examine how much money was transferred, how recipients used the funds and whether the expenditure was consistent with the charities’ declared purposes. It has also shared information concerning the inquiry with police and HM Revenue and Customs.

Ward and 140 Labour colleagues have previously called for an outright ban on charitable funding for settlements, arguing that regulatory investigations alone do not address the underlying problem. The same group urged the government in June to prohibit trade with illegal settlements in the occupied West Bank and East Jerusalem.

MEE reported that the Foreign Office is now considering whether legal sanctions should apply to companies and organisations maintaining business or other links with settlements. The government is also discussing further sanctions against figures involved in Israel’s settlement movement.

Arms exports are another area reportedly under review. The Starmer government suspended around 30 export licences in September 2024 after finding a clear risk that certain British-made military items could be used in serious violations of international humanitarian law in Gaza.

Read: UK Labour approved more weapons to Israel in three months than Tories did in four years

However, UK-made components supplied through the global F-35 programme remained exempt, despite the Israeli military’s extensive use of F-35 aircraft. Broader restrictions on military exports are now being discussed, though no final decision has been taken.

The reported policy shift follows mounting pressure on the government to move beyond condemnations of settlement expansion. In addition to the 140 Labour MPs that called for sanctions, human rights groups have also pushed for concrete measures against the settlement enterprise, accusing UK of not doing enough.