Miliband signals policy shift with ‘comprehensive reset’ of UK approach to Israel
The Foreign Secretary has outlined a new framework to restrict British corporate involvement in West Bank settlements, citing the E1 project as a critical threshold for the two-state solution.

UK Foreign Secretary Ed Miliband has announced a “comprehensive reset” of Britain’s policy toward Israel, addressing the House of Commons for the first time in his new role. The announcement marks a significant shift in institutional posture, with the government pledging to introduce measures designed to prevent British companies from financing, constructing, or advertising new settlements in the West Bank.
The policy pivot is specifically targeted at the E1 settlement plan, a development project for approximately 3,400 homes located between East Jerusalem and the settlement of Ma’ale Adumim. Miliband described the E1 plan as “the crossing of a red line,” arguing that it cuts through the heart of the West Bank and risks making a viable Palestinian state unviable. He stated that the government would not acquiesce to what he described as the destruction of the two-state solution.
The timing of the announcement follows Israel’s recent issuance of tenders for around a third of the planned homes. This move has intensified pressure on the UK government to move beyond diplomatic statements. In May, a group of former British diplomats urged the government to threaten action against companies bidding to build settlements they described as part of a systemic annexation of the West Bank.
Foreign Office minister Stephen Doughty indicated that the upcoming measures could include a ban on trade in goods and services with organisations linked to illegal settlements. While specific details remain under development, Doughty confirmed that the government is examining its wider economic relationship with the occupied territories and the various tools available to tackle corporate involvement.
The announcement has drawn immediate international attention, particularly from Germany. Chancellor Friedrich Merz, typically a staunch defender of Israel, recently described the E1 plan as a “big mistake.” The UK also joined 20 other countries, including France, Italy, and the European Union, in issuing a joint statement labelling the E1 settlement “unacceptable” due to its impact on the territorial contiguity of Palestinian territories.
Israel’s response has been pointed. The Israeli embassy to London cited Foreign Minister Gideon Sa’ar’s warning that if Britain acts against the state of Israel, Israel will respond in kind. Sa’ar stated, “We have the tools. The period is over when people act against the state of Israel and the state of Israel doesn’t respond.”


