Why did UK halt trade with Israeli settlements?

The UK halted trade with Israeli settlements in the occupied West Bank after Israel put forward a tender for 1,200 new homes there, which the government saw as further settlement expansion [1]. Foreign Secretary Ed Miliband set out the ban on goods and some services in the Commons as part of a wider recalibration of UK-Israel relations under Prime Minister Andy Burnham's firmer approach [1, 2, 5]. Ministers pressed ahead despite warnings that it could strain Britain's security relationship with Israel [4].