Israel has sharply criticised UK plans to ban trade in goods from illegal West Bank settlements, with President Isaac Herzog calling the move a "grave miscalculation" that would fall on "the wrong side of history". The row comes as foreign secretary Ed Miliband prepares to unveil a "reset" of UK-Israel relations in a Commons statement, putting Andy Burnham's government on a collision course with both Israel and the Trump administration, which is reportedly set to issue its own statement condemning the intervention.

The proposed restrictions would target goods produced in Israeli settlements in the occupied Palestinian territory of the West Bank, where tensions with Palestinians have escalated in recent months. Israeli officials, including finance minister Bezalel Smotrich and US ambassador Mike Huckabee, have condemned the plan in strong terms, with Smotrich calling for the British ambassador's expulsion and Huckabee warning of damage to UK business given that a quarter of pharmaceuticals used in Britain are made in Israel. Former foreign secretary Sir Malcolm Rifkind cautioned that the timing, ahead of Israel's October general election, risked being seen as foreign interference in domestic politics, while also suggesting the move was partly driven by internal Labour Party pressures.