Labour has been accused of endangering British Jews following the announcement of sanctions against Israeli settlements in the West Bank. Britain's Chief Rabbi, Sir Ephraim Mirvis, described the trade ban as "truly a dark day for British Jews," warning that the "gesture politics" could "further embolden those, at home and abroad, who use hatred as a weapon against Jews."

Conservative leader Kemi Badenoch joined the condemnation, suggesting that the move risked "fanning the flames of anti-Semitism at home" to appease voters shifting to the Green Party. She accused the Prime Minister of "throwing British interests under the bus to win back Islamist and far-Left activist votes."

Foreign Secretary Ed Miliband announced the sanctions, citing growing evidence of "war crimes" by Israel in Gaza and accusing the Israeli government of supporting the "ethnic cleansing" of Palestinians by "terrorist" settlers. Miliband stated that Britain would not "stand by" while the creation of "illegal" settlements destroyed the prospect of a two-state solution. He said goods produced in settlements would be banned, and firms providing services for "settlement expansion" would face sanctions. The Government could not accept plans for a new settlement east of Jerusalem that would divide the West Bank and jeopardize a viable Palestinian state, he added.

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Peter Prinsley, a Jewish Labour MP, reportedly told Miliband personally that the sanctions could put British Jews at risk, fearing that opponents of Israel would not distinguish between government policy, Zionism, and British Jews, thereby increasing the chances of attacks on the community. Israel responded by accusing Labour of "outrageous lies" and announced the closure of the British consulate in Jerusalem, along with banning a dozen MPs.

US Ambassador to Israel Mike Huckabee indicated that the sanctions would "without a doubt" lead to reprisals from the United States, including potential trade bans from states such as Florida. Diplomatic sources suggested that officials at Britain's embassy in Tel Aviv had warned ministers it was "not possible" to target goods solely from settlements without impacting the entire country. This echoed concerns previously raised by then-trade minister Sir Chris Bryant in June regarding the difficulty of isolating settlement goods.

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National Security Adviser Jonathan Powell was also reportedly opposed to the move, warning it could undermine key alliances. The Conservatives argued that the "performative" sanctions, valued at approximately £40 million annually, would backfire. Badenoch suggested Labour's focus on Israel was aimed at internal party management rather than Middle East peace, accusing the party of "relentless demonization of the world's only Jewish state."

Miliband announced the sanctions in a statement to MPs, noting that the plans were coordinated with France and Canada. He stated that Britain was neither silent in the face of injustice nor powerless. With these new measures, 11 countries are now set to boycott Israeli settlements.

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Miliband expressed pride in his Jewishness and unwavering support for Israel, insisting the government remained committed to tackling anti-Semitism in the UK. He emphasized that Israeli occupation of West Bank areas was "unlawful" and that the sanctions aimed to "salvage the only course for peace and security for Israelis and Palestinians – the two-state solution."