A group of Labour MPs and peers has cautioned that Prime Minister Andy Burnham’s proposed tougher sanctions on Israeli settlements in the occupied West Bank could inadvertently result in “a de facto boycott of all of Israel.”
The Times has reported that Burnham is expected to approve plans for a trade ban and the sanctioning of individuals involved in settlement activity, marking a more “robust” approach than his predecessor. This follows Foreign Secretary Ed Miliband’s statement that Israeli plans to develop the E1 settlement east of Jerusalem would effectively divide the West Bank and undermine hopes for a two-state solution.
Critics have raised concerns about the practical implications of such measures. UK officials warn that distinguishing between goods from settlements and those from Israel proper would prove challenging, while a ban on services would be “impractical.” There are fears that legitimate Israeli businesses could be affected, potentially undermining broader trade relations. Additionally, Palestinian businesses in occupied territories might also suffer from the sanctions.
However, supporters argue that Burnham must follow through on his commitments. Ismail Patel writing in Middle East Eye noted that unlike Ireland, which outlawed settlement imports in July, Britain merely labels settlement goods—a policy he described as acknowledging stolen land while still allowing their purchase.
According to the House of Commons Library, UK trade with the occupied Palestinian territories amounted to approximately £38 million in 2025, compared to total UK trade of around £1.95 trillion. Despite these relatively modest figures, commentators suggest Britain holds significant leverage as a major trading partner for Israel.
Around one-third of Labour MPs have signed a letter calling for a ban on settlement trade, with a motion also being prepared for the party’s annual conference next month. Burnham is expected to outline steps for implementing a trade embargo before then.
Labour Friends of Israel, which includes senior MPs and peers, stated it “strongly opposes” settlements and supports “calibrated steps against extremist settlers.” However, the group maintains that a boycott is “practically impossible” and would become a de facto boycott of all Israel, potentially damaging UK national interests, the British Jewish community, and Palestinian workers.