A long-running pro-Israel lobbying group embedded within the UK Labour Party has ignited fierce internal and international debate after releasing a new policy report that argues against a national import ban on goods produced in Israeli settlements located in occupied Palestinian territory, a move that directly contradicts overwhelming grassroots support for such a ban within the party.
Labour Friends of Israel (LFI), an influential lobby group that counts more than 70 sitting UK members of Parliament among its affiliate members (though it has not published a public roster of supporters for some time), published the 15-page policy briefing late last week under the title *Settlements and Solutions: A Guide to the Issues*. The document was reviewed in full by Middle East Eye ahead of its circulation to Labour lawmakers and senior party figures.
Under international law, all Israeli settlements constructed in the West Bank and East Jerusalem – territories captured by Israel during the 1967 Six-Day War – are classified as illegal. This position was further cemented earlier this year when the United Nations’ highest judicial body, the International Court of Justice, issued an advisory opinion ruling that Israel’s ongoing occupation of Palestinian territory is unlawful as a whole, and required all UN member states to take active measures to end the occupation.
Against this global legal consensus, LFI’s report takes a nuanced but controversial stance, acknowledging that most of the international community rejects Israel’s claim that settlements are legal under international law while pushing for a tiered approach to the issue. The document openly criticizes unauthorised Israeli settlement outposts – small, often rogue encampments built without formal approval from the Israeli government – and calls on the UK to pressure any future Israeli government to dismantle these outposts, halt all new settlement expansion outside of existing large, established settlement blocs, increase Palestinian access to construction permits in Area C (the 60 percent of the West Bank under full Israeli civil and military control), and expand territorially for Palestinian autonomous zones.
This framework makes clear that LFI opposes any British objection to the large, established settlement blocs that house the vast majority of Israeli settlers in the West Bank. The report goes further, arguing that a full national ban on all settlement goods is unfeasible on both practical and political grounds. It claims a comprehensive boycott would not only impact Israeli businesses operating within settlement blocs, East Jerusalem and Jerusalem’s Old City, but would also inadvertently harm Israeli citizens living within Israel’s pre-1967 borders, effectively becoming a de facto boycott of the entire state of Israel.
Such a move, the report argues, would be perceived by the UK’s Jewish community as evidence that the Labour government is disproportionately targeting Israel for punitive action, deepening existing divides within the country over the government’s Middle East policy.
The LFI briefing comes at a critical juncture for UK Prime Minister Andy Burnham’s new Labour government, which widespread Whitehall sources confirm is actively considering implementing an import ban on settlement goods once Parliament reconvenes following its current recess. Burnham has publicly stated he is reviewing “further measures to deter unacceptable violence” in the occupied West Bank, where extremist settler attacks on Palestinian communities have spiked dramatically over the past two years.
Multiple senior figures within Burnham’s cabinet have documented ties to LFI. Current Defence Secretary Wes Streeting, who has previously stated he has been a supporter of LFI for more than 20 years in leaked text messages to former disgraced UK ambassador to the US Peter Mandelson, has nevertheless broken with the lobby group’s latest position, endorsing sanctions on Israel and publicly accusing the country of committing war crimes in Gaza. Business and Trade Secretary Jonathan Reynolds, another senior Labour figure, previously served as a vice-chair of LFI.
It is worth noting that when Labour was the official opposition, the party publicly called for a ban on settlement goods. In June 2020, then-shadow foreign secretary Lisa Nandy argued that implementing such a ban would require political courage that sitting Conservative ministers had so far refused to demonstrate.
The push for import restrictions on settlement goods is gaining traction across Europe. France and Sweden recently tabled a joint proposal calling on the European Union to implement strict new import controls on goods produced in Israeli settlements, while the Netherlands officially implemented a national ban on trade in these goods just last month.
Domestically, LFI’s position puts it sharply at odds with the vast majority of the Labour Party’s own grassroots membership. Polling conducted earlier this year found that 87 percent of registered Labour members support a national ban on trade with Israeli settlements, with just 6 percent opposing the measure.
In its report, LFI does condemn the current Israeli administration led by Prime Minister Benjamin Netanyahu, which took office in January 2023 and has dramatically accelerated settlement expansion beyond the established blocs while failing to crack down on violent extremist settlers. The group also argues that there is a long-standing international consensus, previously accepted by both Israeli and Palestinian negotiating teams, that the major settlement blocs will remain under Israeli control as part of any final two-state peace agreement, via a land swap arrangement that would exchange Israeli territory for the occupied land held by the blocs.