Andy Burnham is expected to announce "robust" sanctions targeting Israeli settlements in the West Bank within weeks, in an effort to head off a growing revolt within the Labour Party. The move comes after Israel published a tender for the controversial E1 settlement scheme, which Foreign Secretary Ed Miliband warned could endanger a two-state solution by cutting the West Bank off from East Jerusalem. More than 140 Labour MPs, roughly a third of the parliamentary party, have already signed a letter demanding a ban on trade with illegal settlements, and Burnham faces further pressure from a conference motion expected in Liverpool next month.

Government sources say Burnham is likely to approve a trade ban on goods from Israeli settlements alongside sanctions on individuals, adopting a tougher stance than his predecessor, Keir Starmer. However, critics including Labour Friends of Israel warn that such a ban would be practically unworkable, since distinguishing settlement goods from wider Israeli or Palestinian produce is difficult, and could become a "de facto boycott" of all of Israel. Senior Labour figures such as Emily Thornberry are urging swift action, arguing the E1 project would permanently sever Palestinian territory, while the Foreign Office says it does not comment on speculation but has been clear that illegal settlements threaten a viable Palestinian state.