LONDON — British Foreign Secretary Ed Miliband told the House of Commons that the UK needs a comprehensive reset of its policy on the West Bank. The UK government plans to announce a package of economic sanctions and other measures in the coming weeks to prevent Israeli expansion of West Bank settlements.

Miliband spoke during his first question-and-answer session with lawmakers since the government was sworn into office in July 2026. He stated the new measures would include a ban on goods produced in settlements and targeted sanctions on British institutions and individuals. "We do not want British companies financing, constructing, or advertising new settlements," he said.

The Foreign Secretary outlined the rationale for the policy shift by pointing to specific development projects. "It cuts through the heart of the West Bank and risks making a Palestinian state unviable," Miliband said. He added that the administration is committed to preserving diplomatic frameworks. "This government will not acquiesce in the destruction of the two-state solution."

Miliband indicated that details would follow shortly. "We will act, and I will set out a comprehensive set of measures in the coming weeks," he said. He described the current administrative efforts. "The work we are now undertaking is how we can stop that." Foreign Office minister Stephen Doughty indicated that banning trade in goods with illegal settlements could be included in the government’s measures.

Israeli Foreign Minister Gideon Sa’ar warned that Israel would take retaliatory steps against Britain if the UK acted against Israel. "If Britain acts against the state of Israel, the state of Israel will act against Britain," Sa’ar said in a previous statement. He reinforced this position in a podcast interview. "If they do, there will be a reaction," Sa’ar said.

International criticism of settlement expansion has grown alongside the UK policy review. German Chancellor Friedrich Merz called the E1 settlement plan a "big mistake." The UK joined 20 other countries and the European Union in issuing a joint statement calling the E1 settlement "unacceptable." Nine EU governments have demanded action from Brussels regarding settlements.

Other nations have implemented similar trade restrictions. Spain has banned settlement imports and Norway is legislating against trade and services linked to settlements. According to reports, Israel has built about 160 settlements housing 700,000 Jewish people among 3.3 million Palestinians in the occupied West Bank and East Jerusalem since 1967.

Why It Matters

The timing of the announcement follows Israel’s Lands Authority opening bids for 1,234 homes in the E1 section of the Ma’aleh Adumim settlement in August 2026. The E1 project plans to add 3,400 homes to the municipal boundaries of Ma’aleh Adumim, a move that fragments Palestinian territory. The UK response aligns with broader European demands for action while facing explicit warnings of retaliation from Israeli leadership.

Timeline

The International Court of Justice issued an advisory opinion in 2024 stating that construction in Area C of the West Bank is illegal. The UK recognized Palestinian statehood in 2025 under the previous government. Israel’s Lands Authority opened bids for 1,234 homes in the E1 section of the Ma’aleh Adumim settlement in August 2026.

On September 2, 2026, Ed Miliband stated, "It cuts through the heart of the West Bank and risks making a Palestinian state unviable." He also declared, "This government will not acquiesce in the destruction of the two-state solution." Miliband added, "We will act, and I will set out a comprehensive set of measures in the coming weeks." Israeli Foreign Minister Gideon Sa’ar responded on the same day, saying, "If they do, there will be a reaction."

What's New

Additional reporting shows statements that expand on the initial policy announcement. Gideon Sa’ar stated, "If Britain acts against the state of Israel, the state of Israel will act against Britain." Ed Miliband affirmed, "This government will not acquiesce in the destruction of the two-state solution," and added, "We will act, and I will set out a comprehensive set of measures in the coming weeks."

Further details emerged regarding the scope of potential restrictions. Contextual data indicates that since 1967, Israel has built about 160 settlements housing 700,000 Jewish people among 3.3 million Palestinians in the occupied West Bank and East Jerusalem. Diplomatic coordination was also showed, as the UK joined 20 other countries and the European Union in issuing a joint statement calling the E1 settlement "unacceptable".

How Sources Differ

Discrepancies exist regarding the scale of the Ma'aleh Adumim settlement expansion. In contrast, Israel Lands Authority planning documents indicate that the E1 project plans to add 3,400 homes to the municipal boundaries of Ma’aleh Adumim.