The British government has issued a stern warning to local authorities controlled by the Labour Party, indicating they face potential lawsuits for implementing boycotts against Israeli businesses. Communities Secretary Steve Reed emphasized that municipal councils should refrain from engaging in foreign policy matters and instead concentrate on delivering essential local services.
This governmental caution follows several local councils—including Oxford City Council, Cumberland council, and Newcastle council—passing motions over the past year to divest from and boycott companies implicated in Israeli military operations or benefiting from the occupation of Palestinian territories. These decisions were often justified by references to International Court of Justice rulings and concerns about human rights violations.
The government directive references existing 2016 guidance that prohibits public bodies from implementing procurement boycotts against Israeli companies or those trading with Israel. Reed specifically pointed to the Procurement Act 2023, under which councils could be sued by suppliers suffering financial losses and potentially required to pay substantial damages.
This development occurs amidst growing tensions surrounding pro-Palestine activism in Britain. Recent months have seen police forces announcing arrests for specific chants and signage at demonstrations, while simultaneously, seven UN human rights experts have expressed grave concerns about imprisoned pro-Palestine activists on hunger strike facing serious health risks.
The Boycott, Divestment and Sanctions (BDS) movement, established in 2005 as a non-violent pressure campaign, has become increasingly contentious in UK local politics. The current Labour leadership, despite previously opposing Conservative legislation banning such boycotts while in opposition, now appears to be enforcing a stricter line through Reed’s warning.
Additionally, multiple council pension funds—including those of Islington, Lewisham, Wandsworth and Caerphilly—have excluded companies appearing on United Nations lists of businesses operating in occupied Palestinian territories, further complicating the relationship between local democracy and national foreign policy.