The UK government has officially suspended new free trade negotiations with Israel, citing Israel's ongoing military operations in Gaza and escalating violence by settlers in the occupied West Bank.
The move, announced in Parliament by Foreign Secretary David Lammy, marks a significant shift in UK-Israel relations and follows mounting domestic and international pressure over the humanitarian catastrophe unfolding in Gaza.
Sanctions and diplomatic rebuke
Speaking to MPs on Tuesday, Lammy confirmed that in addition to pausing free trade talks, the UK is expanding sanctions against illegal Israeli settler outposts and individuals associated with violence against Palestinians. The Israeli ambassador to the UK, Tzipi Hotovely, was summoned to the Foreign Office for urgent discussions.
“The Israeli government has a responsibility to intervene and halt these aggressive actions,” Lammy told Parliament. “Their consistent failure to act is putting Palestinian communities and the two-state solution in peril.”
The British government has now sanctioned three individuals, two illegal outposts, and two organisations accused of supporting or conducting violence against Palestinians. Lammy emphasised that while the existing UK-Israel trade agreement remains in force, “no further negotiations can proceed under current circumstances.”
The UK also strongly criticised Israel’s 11-week blockade on humanitarian aid to Gaza. “The block on aid has been cruel and indefensible,” said Middle East Minister Hamish Falconer, who reiterated the UK’s demand for unrestricted humanitarian access.
Deepening crisis in Gaza
The UK’s decision comes amid intensified Israeli bombardments and a fresh ground offensive in Gaza, where hundreds of Palestinians have been killed in recent days. Aid agencies report worsening starvation and a collapse of essential services, prompting renewed international calls for ceasefire and accountability.
According to the latest reports, at least 326 people have died due to the Israeli blockade, and 14,000 infants remain at risk from hunger and disease, worsening what UN officials have called a “man-made famine.”
Criticism of Labour govt’s Arms Policy
Despite the strong rhetoric, the Labour government has been accused of hypocrisy and complicity, particularly for its continued arms sales to Israel.
Labour MP Zarah Sultana told Al Jazeera: “This is not a tragic accident of war. It is the predictable result of a campaign of collective punishment waged with impunity … The UK’s failure to act is not just a moral disgrace – it is a political choice.”
Independent MP and former Labour leader Jeremy Corbyn went further, calling on the government to end all military cooperation with Israel. “There is only one way the government can cease its complicity in genocide,” he said, “and that is by ending military cooperation and imposing comprehensive sanctions.”
Although the UK suspended some arms export licences in September, it continues to support the F-35 fighter jet programme, citing obligations to international defence supply chains. A recent report revealed that 8,630 munitions were still exported from the UK to Israel even after the partial embargo took effect.
UK government data shows that £127.6 million ($171 million) worth of military equipment was approved for export to Israel between October and December 2024.
Legal Challenge and Global Pressure
The UK government is now facing a legal challenge over arms exports. The Global Legal Action Network (GLAN) has filed a case in the High Court questioning the government’s compliance with its own export control laws.
GLAN director Gearoid O Cuinn dismissed the trade deal suspension as symbolic: “It’s not a future trade deal that is facilitating the killing and starving of children – it’s the ongoing supply of British weaponry and military support.”
Meanwhile, the European Union has followed suit, with EU foreign policy chief Kaja Kallas announcing a formal review of the EU-Israel Association Agreement. The EU will assess whether Israel is violating its human rights commitments under Article 2 of the agreement.
A “strong majority” of EU foreign ministers – 17 out of 27 member states – supported the review. France’s Foreign Minister Jean-Noel Barrot and others welcomed the move, calling it a necessary response to the deteriorating humanitarian crisis.
However, proposed EU sanctions against violent Israeli settlers remain blocked by an unnamed member state.
Public pressure and path ahead
The UK government’s shift comes amid growing domestic protests, with weekly pro-Palestinian marches demanding a ceasefire and an end to arms exports. Activist groups and civil society coalitions, including the Palestinian Youth Movement and Workers for a Free Palestine, have been vocal in calling for broader sanctions and accountability.
Husam Zumlot, Palestine’s ambassador to the UK, welcomed the decision but urged the government to go further by implementing a full arms embargo and supporting international legal actions against Israeli officials accused of war crimes.
As global scrutiny intensifies, the pressure on Israeli Prime Minister Benjamin Netanyahu’s government is mounting. However, Israeli officials have dismissed the UK’s decision. In a statement, Israel’s Foreign Ministry claimed that “negotiations were not being actively pursued” anyway and called the UK’s sanctions “unjustified and regrettable.”
