Ed Miliband set to ban UK trade with Israeli settlements in West Bank in move which risks US fury

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The as-yet-unknown details of the package are set to be outlined later today, with Mr Miliband noting it would represent a “comprehensive reset” for the UK’s foreign policy with Israel.

Mr Miliband promised sanctions earlier this month, saying: “This government will not acquiesce in the destruction of the two-state solution.

"We will act, and I will set out a comprehensive set of measures in the coming weeks."

It is understood that Prime Minister Andy Burnham is expected to fast-track the measures following Tuesday's Cabinet meeting.

The new measures will likely include sanctions on companies involved in settlement activity, criminalise ownership of property in settlements by UK citizens, and ban trade in settlement goods.

The settlements have been deemed illegal under international law, by bodies including the United Nations.

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Today's announcement in Parliament is likely to take place in the afternoon, after a 9:30 am debate on Jewish safety in Westminster Hall, according to The Jerusalem Post.

The trigger for the decision was Israel’s launch of a tender last month for the E1 settlement, which would sever the West Bank’s connections to Jerusalem, UAE-based publication The National reports.

Campaigns against settlement expansion and escalating violence in the West Bank have been ongoing for more than a year.

A group of former British diplomats, Britain Palestine Project, proposed five criteria to measure the effectiveness of Mr Miliband’s package.

In a statement, they said the policy should work to end the UK’s involvement in the occupation, as well as settlement trade and services.

The package should also strengthen Palestinian statehood, while pressuring Israel and building international support for “real” consequences.

“The question has been whether recognition (of Palestine) would be followed by policy,” the BPP’s executive director Brian Brivati said.

The UK’s Foreign, Commonwealth and Diplomatic Office is said to be divided over the warning that punitive measures from the UK would galvanise the far right in Israel before elections in October.

It is also considering what impact such a policy would have on its relationship with the US. This is seen as one of the issues that held the previous Labour government back from imposing sanctions.

The US ambassador to Israel, Mike Huckabee, accused Mr Miliband – who is Jewish - of “Jew hate” on Sunday.

In a video shared by the Foreign Office on Friday, Mr Miliband said what was unfolding in Gaza was “horrific”, citing reports of “medicines being blocked” and “children dying while waiting for vital life-saving treatment”.

Mr Miliband, who was the first ethnically Jewish leader of the Labour Party in 2010 and describes himself as a Jewish atheist, also drew criticism from the Israeli Foreign Ministry, which denied restrictions on medicines reaching Gaza.

Chatham House expert Yossi Mekelberg also noted that the possible negative impact of sanctions on the Palestinian economy could be mitigated through support and investment in Palestine.

“It is a test for every policy that it looks at every angle,” he told The National. “If it’s done in a way that settlements are hurt and Palestinians are not hurt.”

On Monday, Downing Street confirmed to the Telegraph that UK Prime Minister Andy Burnham has not spoken to Prime Minister Benjamin Netanyahu since becoming Prime Minister 50 days ago

LBC has contacted the Foreign Office for comment.