UK to ‘reset policy’ on West Bank settlements, Miliband tells parliament

Britain is preparing a broad policy shift on Israeli settlements in the West Bank. Foreign Secretary Ed Miliband told Parliament that the government would announce a package of economic sanctions and other measures in the coming weeks.

The planned measures could include a ban on goods produced in settlements and targeted sanctions against British institutions and individuals. Miliband said Britain was examining its wider economic relationship with the occupied territories and how to prevent British companies from financing, building or advertising new settlements.

“We are looking, indeed, at our wider economic relationship with the occupied territories, and the different tools we have to tackle it,” Miliband said. “We do not want British companies financing, constructing, or advertising new settlements. The work we are now undertaking is how we can stop that.”

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We are looking, indeed, at our wider economic relationship with the occupied territories, and the different tools we have to tackle it. We do not want British companies financing, constructing, or advertising new settlements. The work we are now undertaking is how we can stop that.

Israel’s Foreign Minister Gideon Sa’ar warned that Britain would face retaliation if it acted against Israel. “We are prepared, and I hope they will not make the mistake of doing this. If they do, there will be a reaction,” Sa’ar said in a podcast interview with the Hebrew news website Ynet.

Relations between Israel and Britain have worsened over Israeli military actions in Gaza and the West Bank following the Hamas-led October 7, 2023 attack. Britain’s recognition of Palestinian statehood under the previous government in 2025 further inflamed tensions.

Miliband had already raised the possibility of targeted sanctions after Israel’s Lands Authority opened bids in August for 1,234 homes in the E1 area of the West Bank settlement of Ma’aleh Adumim. He said the move could undermine a two-state solution. His latest comments came after lawmakers pressed the government over Israeli actions in the West Bank, including attacks by Israelis against Palestinian civilians and continued settlement construction.

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We are prepared, and I hope they will not make the mistake of doing this. If they do, there will be a reaction.