Shift in Tone: How UK-Israel Relations Are Facing a New Strain Under Labour

The United Kingdom is expected to announce trade restrictions on illegal Israeli settlements in the occupied West Bank, marking the latest indicator that UK-Israeli relations have experienced a downturn, according to some analysts. Although Britain remains one of Israel’s strongest Western allies, policies and rhetoric have shifted since the Labour Party returned to power after more than a decade in opposition. While the UK continues to maintain diplomatic ties and supplies F-35 parts through the global pool programme accessible to Israel, it has simultaneously suspended some arms-export licences and increased its condemnation of the conduct of the Israeli military and settlers.

During campaigning ahead of the 2024 general election, then-Labour leader Keir Starmer stated during an interview with the UK’s LBC radio station that Israel “has the right” to withhold power and water from Gaza. His remarks provoked widespread upset, prompting him to later retract the statement and clarify that he believed Israel had a right to self-defence. By May 2025, in a joint letter alongside French President Emmanuel Macron and Canadian premier Mark Carney, he wrote that he “strongly” opposed the “expansion of Israel’s military operations in Gaza”.

Recently, Foreign Secretary Ed Miliband, appointed under new premier Andy Burnham, informed the House of Commons that he would outline measures to prevent UK involvement in projects such as the E1 settlement in the occupied Palestinian territory. This announcement arrives amid escalating violence toward Palestinians in Gaza and the occupied West Bank.

Zena Agha, a policy analyst with the British Palestinian Committee, told Al Jazeera, “Obviously, the rhetoric differs between them [UK prime ministers], but materially, the Israeli regime operates just as it did, irrespective of whether Andy Burnham or [former Conservative Prime Minister] Rishi Sunak was at the helm. We’re seeing more of a continuation versus a rupture.” Meanwhile, in Israel, Prime Minister Benjamin Netanyahu and other senior figures have frequently mocked Britain as public opinion increasingly turns against Israel’s treatment of Palestinians. Translated comments published by Israeli media last month revealed Netanyahu referring to the UK as the “Islamic Republic of Britain” while criticizing UK media coverage of Israel.

While settlements and outposts are illegal under international law, the E1 project aims to establish a continuous settlement corridor from the large settlement in Ma’ale Adumim and other illegal Israeli settlements to occupied East Jerusalem, which would effectively divide the West Bank in half. Condemning the settlement expansion project, Miliband declared, “This government will not acquiesce in the destruction of the two-state solution. We will act, and I will set out a comprehensive set of measures in the coming weeks.” Asked about immediately banning trading goods and investment in both directions, the foreign secretary stated that “a comprehensive reset of our approach on these issues” is necessary because it is “high time.”

Agha noted that while trade restrictions on settlements are a positive direction, they represent the “bare minimum,” particularly within the context of the Gaza genocide. She told Al Jazeera that such measures align with existing international legal frameworks and should not be overly celebrated, though they mark a departure from the previous administration's approach. Agha highlighted that questions remain regarding how these sanctions will function in practice and whether they will amount to mere rhetoric rather than a meaningful impact on how the Israeli military occupation operates and profits from the colonization of Palestinian land and labour.

Details regarding how the government will impose these trade restrictions and which specific goods will be targeted remain scarce. However, the administration of Andy Burnham, which took power in July, is perceived as taking bolder actions concerning Israel. Last month, the UK joined 21 countries and the European Commission in condemning the E1 project, calling on Israel to retract the plans immediately and halt West Bank settlement expansion.

Under Starmer, former Foreign Secretary Yvette Cooper announced in June that the UK, France, and Canada had imposed sanctions on six entities and one individual involved in financing, enabling, and carrying out settler violence in the occupied West Bank, with coordinated sanctions from Australia and New Zealand following shortly before. Nevertheless, Palestinian sympathizers argue that Starmer did not push far enough. Agha asserted, “It’s clear that Palestine is a decisive issue for the British electorate. I think Andy Burnham is perceptive to the shifts on the ground and how the British public feel.” Shamiul Joarder of Friends of Al-Aqsa, a pro-Palestine group in Britain, advocated for a full trade ban with Israel, stating that Britain must pull necessary levers to uphold international law, stand up for Palestinian rights, and oppose oppression and apartheid.

Israeli officials have condemned the sanctions plan, further straining diplomatic relations. Israeli Foreign Minister Gideon Saar warned that Israel would “act against Britain” should the sanctions proceed, telling the Israeli news outlet Ynet that such a move would be a big mistake. Agha suggested that the decision to sanction goods from illegal settlements constitutes a diplomatic dispute rather than a significant economic issue, noting that Israel may dismiss the measures once implemented. She added, “The question actually is: Do they have the diplomatic belief or ideological conviction in order to do it?”