British Foreign Secretary Ed Miliband accused the Israeli government Tuesday of turning a "blind eye" to what he called "ethnic cleansing" by settlers in the Israel-occupied West Bank.
Miliband told Parliament that the U.K. government would introduce "an import ban on goods from illegal settlements in the occupied territories," in a move coordinated with France and Canada.
"The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists," said Miliband.
"All too often the Israeli government has turned a blind eye to this and worse members of it have made statements and taken actions to support the forced displacement of Palestinians," he told MPs.
Miliband said Britain could no longer simply "call out" injustice and suffering, but told the House of Commons that the country now had to "act" to oppose the expansion of settlements.
"Today we refuse to be bystanders to further suffering and to the destruction of the two-state solution," he said, referring to Britain's long-held support for the two-state idea, which Israel opposes.
He also announced that Britain would "take action against specific companies and individuals who provide services such as construction, infrastructure, financing, or real estate for settlement expansion."
He said the measures would be in place within six to nine months.
Miliband added that the U.K. was sanctioning "a further set of extremist settlers who have supported or incited acts of violence against Palestinian communities."
Miliband, the son of Jewish refugees to Britain, said he was "proud" of his Jewish heritage and was "unwavering" in his support of Israel.
"There is absolutely no contradiction between this and my support for the State of Palestine," he added.
The British government had already suspended more than 30 export licenses for arms used by the Israeli military during its war with Hamas in Gaza.
Miliband said Britain would now "refuse all license applications for arms and other exports that materially contribute to the occupation."
The U.S., through its ambassador to Israel, has already criticized Britain's new sanctions, while two Israeli ministers called for measures to be taken against Britain.
U.S. Ambassador to Israel Mike Huckabee told the BBC that the sanctions amounted to "discrimination against the Jewish people."
He warned they could potentially limit the UK's ability to do business in some U.S. states that prohibit companies that boycott Israel from being eligible for state government contracts, procurement or public investment.
Meanwhile, Israeli Finance Minister Bezalel Smotrich called for the British ambassador in Tel Aviv to be expelled, while National Security Minister Itamar Ben-Gvir has asked Netanyahu to close the British Consulate in East Jerusalem, which is accredited to the Palestinian Authority in the West Bank.
Israeli President Isaac Herzog meanwhile accused Britain of interfering in Israel's upcoming elections, due in late October.
The focus of recent concerns is Israel's E1 settlement project in the West Bank not far from Jerusalem.
Smotrich on Tuesday announced the advance of plans for 1,000 new homes in two other settlements in the West Bank.
The United Nations, Palestinians and most countries regard settlements as illegal under international law.
Britain in 2025 joined other countries to recognize a Palestinian state as a means to promote a two-state solution and in June it sanctioned Israeli networks involved in financing, enabling and carrying out violence in the Israeli-occupied West Bank.
Israel-U.K. relations have become increasingly strained in recent years with London criticizing Israel's war on Gaza, the expansion of settlements in the West Bank and rising settler attacks on Palestinians.
