The shift in British policy on Israel is palpable

The United Kingdom has taken a notable step in its Israel policy by imposing a ban on trade with Israeli settlements and signalling a broad reorientation of bilateral relations. Foreign Secretary Ed Miliband has described the approach as a "comprehensive reset," and Downing Street officials say the new government intends to press Israel over settlement expansion and its conduct toward Palestinians. The move arrives amid growing British frustration with settlement growth, which now involves hundreds of formal sites and many more outposts.

British ties with Israel were long characterised by close cooperation in trade, defence and security, with occasional public reproaches over Israeli actions. In March 2023 the two governments signed a 2030 Roadmap to deepen collaboration across sectors. That relationship hardened after the October 7 attacks, when then-prime minister Rishi Sunak offered unequivocal support for Israel. Subsequent UK governments have diverged: Labour under Keir Starmer introduced a partial arms ban in 2024 but stopped short of labelling Israeli actions in Gaza as violations of international law, while the UK recognised Palestine in 2025 and sanctioned two Israeli ministers, Bezalel Smotrich and Itamar Ben-Gvir.

Since Andy Burnham became prime minister in late July, London’s tone has grown markedly sterner. Burnham acknowledged earlier mistakes in Labour’s initial response to Gaza, and the new administration has signalled firmer measures. Miliband’s reaction to Israeli plans to advance tenders in the E1 area indicated a willingness to deploy an array of responses, including unspecified measures that could touch on arms sales.

Israel has reacted angrily to the shift. Senior Israeli ministers have accused the UK of anti-Jewish bias and suggested retaliatory steps ranging from diplomatic expulsions to economic countermeasures; some officials warned they could seek US support or remove the UK from international aid coordination bodies monitoring Gaza. US diplomatic commentary has also been sharply critical of London’s stance. Observers caution that while hardline rhetoric and punitive steps are possible, much of any retaliation could disproportionately affect Palestinians, for example through accelerated settlement announcements.

Looking ahead, the prospects for restoring Britain-Israel relations hinge on political developments in Israel. The current view in London is that a change in personality at the top would not guarantee policy shifts: a different prime minister such as Gadi Eisenkot might soften rhetoric without abandoning the strategic approach toward the Palestinian territories. British officials say they will persist with pressure until they see substantive changes on the ground, particularly an end to settlement expansion.