UK Public Sector Holds Billions in Contracts With Companies Linked to Illegal Israeli Settlements

An investigation reveals that at least 17 companies linked to illegal Israeli settlements in the occupied West Bank hold more than 2.1 billion pounds ($2.85bn) in United Kingdom public-sector contracts. These findings emerge as over 140 UK Labour MPs urge the government to prohibit trade with illegal Israeli settlements, a proposal under consideration by Prime Minister Andy Burnham.

Procurement records, company filings, and corporate disclosures analyzed by Al Jazeera show that businesses flagged by the United Nations—along with their subsidiaries—have secured British public-sector contracts across sectors such as emergency services, transport, road maintenance, and driving licensing.

Stephen Humphreys, professor of international law at the London School of Economics, noted that evidence suggests the UK might be violating its international obligations by maintaining commercial relationships with entities identified by the UN.

Data compiled by Tussell indicates that these 17 entities hold 125 public contracts totaling 2.129 billion pounds ($2.89bn). Motorola Solutions accounts for more than 1.7 billion pounds ($2.3bn) of this total, primarily through its British subsidiary Airwave Solutions. Additional contracts are tied to four other corporate groups: Heidelberg Materials, Egis, CAF, and Fosun.

A report from the United Nations Human Rights Office highlights these five corporate groups for involvement in activities related to illegal Israeli settlements. Heidelberg Materials' Israeli subsidiary operates a quarry on Palestinian land in the occupied West Bank, while Motorola's technology is integrated into settlement security infrastructure. Egis and CAF are involved in Jerusalem's light-rail network, and Fosun owns Ahava, an Israeli cosmetics manufacturer operating in the Mitzpe Shalem illegal settlement.

Civil rights groups, including the Palestinian Solidarity Campaign in the UK, view these companies as complicit in the appropriation of Palestinian land. Following the International Court of Justice ruling in July 2024 that declared Israel's presence in the occupied Palestinian territory unlawful, observers question the legality of Britain's continued commercial ties with these firms.

Former Labour leader Jeremy Corbyn criticized the government's economic ties, stating that the UK is supporting apartheid and deepening its complicity in the occupation. Meanwhile, the Cabinet Office stated that public authorities decide on supplier exclusions on a case-by-case basis and do not enforce boycotts without formal UK sanctions or restrictions.