Israel has accused Foreign Secretary Ed Miliband of imposing sanctions on companies linked to illegal West Bank settlements partly to recover support from voters who have shifted from Labour to the Greens, deepening one of the most serious diplomatic disputes between London and Jerusalem in decades.
Miliband announced the measures against businesses involved in settlement activity shortly before he was due to hold further talks with Gideon Sa’ar, Israel’s foreign minister, over settlement expansion.
Israeli and British diplomatic sources told The Telegraph that Miliband proceeded with the sanctions despite private negotiations between the two governments. Critics have argued that the decision was influenced by domestic political pressures, including Labour’s annual conference and a forthcoming by-election in Holborn and St Pancras, where Green Party leader Zack Polanski is contesting Sir Keir Starmer’s former seat.
The sanctions triggered a sharp response from Israel, which subsequently closed the British consulate in Jerusalem. British officials have warned that the move could significantly restrict the UK’s ability to operate in the West Bank and provide assistance to British personnel during regional crises.
During an initial conversation on August 11, Sa’ar reportedly told the Foreign Office that Israel would not proceed with construction of the E1 development before its October 27 election.
The proposed project, comprising about 3,400 homes, has generated international concern because of its potential impact on the territorial continuity of the West Bank. Some Israeli ministers have described the development as threatening the viability of a future Palestinian state.
Miliband subsequently raised concerns over increasing settler violence and settlement expansion, with the ministers agreeing to continue discussions nine days later.
That meeting was cancelled after Miliband told MPs that Britain would proceed with sanctions, citing Israeli tenders for construction contracts in the E1 area. Diplomatic sources said the decision effectively removed an opportunity for Britain to negotiate directly with Israel over settlement activity.
The measures have also attracted criticism in Britain. Jewish organisations and the Chief Rabbi have warned that the sanctions could contribute to tensions and increase the risk of antisemitic incidents.
The Foreign Office rejected claims that Miliband was motivated by electoral considerations.
“These claims are completely false,” a spokesman said.
They continued: “The accelerating expansion of illegal settlements is putting future progress towards the two-state solution at significant risk, and that is why we brought forward our measures to respond to this moral emergency.
“In the past year alone, the UN have said that 16 Palestinians have been killed by settlers and recorded over 1,500 incidents of settler related violence – an average of over six incidents a day.
“Despite this, this Israeli government has approved 104 new settlements and permitted tenders for the construction of the E1 mega settlement to go ahead, which as planned would cut through the heart of the West Bank.”
Britain coordinated the sanctions with France and Canada, although Israeli officials regard Miliband as the principal force behind the policy.
The dispute highlights the increasingly difficult balance facing Britain as it seeks to pressure Israel over settlement policy while maintaining diplomatic channels with a key Middle Eastern ally. British officials had previously warned that unilateral measures could expose the UK to retaliation, with the closure of the Jerusalem consulate demonstrating the potential consequences.
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