A growing wave of cross-party pressure in the United Kingdom is pushing the ruling Labour government toward a historic policy shift: an imminent ban on imports of goods produced in illegal Israeli settlements in occupied Palestinian territories, multiple insiders have confirmed to independent outlet Middle East Eye.
Just two years ago, the Labour Party held a firm position opposing any form of sanctions or boycotts targeting Israel. That stance has undergone a complete ideological reversal in recent months, with senior party figures now openly endorsing a settlement goods ban as a necessary step aligned with international law. Sources close to the government confirm that Middle East Minister Hamish Falconer privately told Labour MPs late last year that such a ban is a desirable policy outcome, though final authority rests with 10 Downing Street.
The push for action draws its legal foundation from the 2024 International Court of Justice (ICJ) advisory ruling, which formally deemed Israel’s long-standing occupation of Palestinian territory illegal under international law. The ICJ ruled that all UN member states have a legal obligation to avoid providing aid or assistance to the occupation. Two years on from that ruling, proponents of the ban argue the UK is falling far behind its European allies in upholding this obligation.
Across the European Union, momentum for restriction has accelerated sharply in recent months. France and Sweden recently tabled a joint proposal calling for the bloc to implement strict mandatory import controls on settlement goods, while the Netherlands enacted a national ban on trade in goods originating from occupied Palestinian territories last month. This shifting European landscape has created a clear opening for the UK to align with allied action.
The ongoing shifts in global geopolitics, particularly the US-Israeli standoff with Iran, have also reduced the Starmer government’s willingness to defer to Washington’s preferences on Middle East policy, insiders note.
A parliamentary debate on the proposed ban is already scheduled, secured by Abtisam Mohamed, a Labour MP serving on the parliamentary Foreign Affairs Committee (FAC) which oversees government foreign policy. While a final date for the debate has not been confirmed, the event is expected to amplify pressure on Downing Street to act. Mohamed argues that the UK’s current inaction is inconsistent with its stated commitment to a rules-based international order, pointing to a clear precedent: the UK already enforces strict trade sanctions on Russian-occupied territories of Ukraine. “If we can impose strict sanctions on Russian-occupied territories under the Russian Sanctions Guidance, why not Israeli-occupied territories?” Mohamed asked.
On-the-ground data underscores the urgency of action for advocates. Israeli human rights organization B’Tselem records that Israel has forcibly displaced 59 Palestinian communities, comprising more than 4,000 people, from the West Bank since 7 October 2023. The United Nations documented nearly 2,000 separate settler attacks against Palestinian communities in 2025, an average of roughly five violent incidents per day.
Emily Thornberry, senior Labour MP and chair of the FAC, whose views carry significant weight among both cabinet ministers and backbench MPs, has emerged as a leading voice for aggressive action. She described the ongoing situation in occupied Palestinian territory as “intolerable, and yet we tolerate it,” arguing that the UK must impose tangible economic costs to end settlement expansion. “We should be banning the import of goods produced in illegal settlements. We should be placing sanctions on those involved in the settlements. We should be making sure we are stopping the involvement of any British companies,” Thornberry laid out. “We should be coming down hard on insurance networks. We should be making it clear that it is not possible to construct settlements on the West Bank, and we are going to do everything to stop it.”
The Starmer government has already taken incremental steps to signal disapproval of settlement activity. In May 2025, it imposed sanctions on multiple prominent Israeli settlers in the West Bank, including veteran far-right activist Daniella Weiss, head of the Nachala settlement movement. The following month, the UK joined a coalition of allied nations in sanctioning two far-right Israeli cabinet ministers—National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich—over their repeated incitement of violence against Palestinian communities in Gaza and the West Bank.
A Foreign Office spokesperson reaffirmed the government’s public stance in a statement to Middle East Eye, noting: “We have strongly and repeatedly condemned settler violence and the expansion of illegal settlements, and we have imposed sanctions both on those responsible for that violence and on individual members of the Israeli cabinet for inciting it. We continue to call on the Israeli authorities to clamp down on all those who are seeking to inflame tensions, and to tackle the unacceptable violence and destruction of property that is being committed by settler groups against Palestinian communities.”
But progressive and opposition MPs argue these incremental measures are not enough, and that the current voluntary labelling policy for settlement goods is woefully insufficient. In response to criticism, the government has noted that its current guidance requires accurate labelling of settlement goods to avoid misleading consumers, and that it publishes clear risk warnings for UK businesses operating in settlements.
Kim Johnson, a Labour MP and prominent advocate for action on Israeli violations of international law, said the UK should have imposed sweeping restrictions long ago. “Our government cannot claim to support a rules-based international order, while allowing economic and political support to flow to activities that violate international law,” Johnson said. Scottish National Party trade spokesperson Chris Law echoed this criticism, arguing that voluntary labelling does not go far enough to uphold the UK’s legal and moral obligations. “Imported settlement products should not be labelled as such for the benefit of consumers, they should be banned so that the UK is no longer involved in this immoral trade and to demonstrate to Israel that flagrant breaches of international law will not be tolerated,” Law said, noting that “it is time for the UK government to stop making excuses.”
Green Party foreign affairs spokesperson Ellie Chowns, whose party made major gains in recent UK local elections amid voter anger over Labour’s Middle East policy, called on the government to go even further than a settlement goods ban, demanding additional sanctions on all Israeli officials responsible for authorizing illegal settlement activity. She called the Labour government’s current approach “an utter failure of our legal and moral obligations”, describing settlement goods as the “proceeds of crime”. Independent MP Shockat Adam, who traveled to the occupied West Bank for a fact-finding mission last year, added that settlement expansion is directly driving the ethnic cleansing of Palestinians, arguing that “international law cannot be applied only when it is politically convenient”.
Insiders note that the UK is unlikely to enact a ban unilaterally, and would most likely move in coordination with European allies such as France and the Netherlands, mirroring the coordinated approach the UK took last year when it joined Australia, Canada, New Zealand and Norway in sanctioning Ben Gvir and Smotrich, and recognized Palestinian statehood alongside France, Canada and Australia last September.
Beyond legal and moral arguments, domestic political pressures are creating a major incentive for the Starmer government to shift its policy. Labour is facing growing erosion of support among its left-wing base over its handling of the Israel-Gaza conflict, with the Green Party capitalizing on this discontent to make major electoral gains in recent local elections.
The coming expected leadership challenge to Prime Minister Keir Starmer in the next few months is widely seen as the most significant factor driving potential policy change. Rank-and-file Labour members are far more critical of Israel than the parliamentary party: a June 2025 poll found that nine out of ten ordinary Labour members believe the UK should adopt a much more critical stance toward Israel than the current government does. All potential leadership candidates, including frontrunner Andy Burnham, Mayor of Greater Manchester, and former Health Secretary Wes Streeting, will face intense pressure from party members to adopt a more strident position on settlement activity and the ongoing crisis in Gaza.
It has already been revealed that Streeting privately supported full sanctions on Israel last year, and he has ramped up public criticism of Israeli policy in recent months. Even Starmer himself may choose to adjust his policy ahead of a leadership contest, in order to undercut potential challengers and win back disaffected left-wing voters.
For the combination of international legal pressure, shifting allied policy, cross-party parliamentary momentum, and domestic political competition, experts say a significant policy shift—at minimum, an import ban on goods from illegal Israeli settlements—has become increasingly likely in the near future.