Israel: Trade

Lord Blencathra Excerpts

Thursday 8th January 2026 Grand Committee

[Lord Blencathra (Con)]

My Lords, I am grateful to the noble Lord, Lord Austin of Dudley, for securing this debate. I declare that I am not Jewish, but I am a member of the Conservative Friends of Israel.

In the year to the end of 2025, the UK and Israel traded roughly £6.2 billion in goods and services, with the UK reporting a trade surplus of £1 billion over that period. Services account for a large and growing share of that relationship, and thousands of British jobs depend on exports to Israel. As we have already heard, the UK-Israel economic relationship is concentrated in high-value sectors such as technology, cyber, life sciences, finance and services, which support British jobs and R&D partnerships. Then, of course, there is the other trade that is vital to our economy and security: intelligence sharing and co-operation on the military and defence. We co-operate with Israel, the only democratic country in the whole of the Middle East, on signals intelligence, counterterrorism, cyber security and aerial surveillance data.

All of that co-operation with a trusted partner helps our trade. I regret that it has been put at risk by the foolish suspension of further FTA discussions and some restrictions on the supply of defence goods. Those were, I think, token gestures to appease some Labour Back-Benchers in the Commons who are fearful of losing their seats to pro-Palestinian agitators, and they risk weakening the very economic and diplomatic ties that have worked so brilliantly up to now.

Our close working relationship with Israel has been made possible for more than three centuries because Jewish people have been integral to our national life, building businesses, schools, hospitals, cultural and scientific institutions, and charities. British Jews have served in our Armed Forces in large numbers: around 40,000 in the First World War and 60,000 in the Second World War. These figures reflect sacrifice and loyalty to this country. Jewish citizens have been prominent in science, law, medicine, the arts and public life, enriching our national life through peaceful and industrious behaviour. Just look around this Committee and the House and reflect on the dozens of Jewish Peers who have contributed across religion, politics, the media and public service. The Jewish community has not sought special privileges but has long sought to belong, to serve and to improve Britain through hard work and civic engagement.

The relevance to this debate of the huge contribution that British Jews have made to this country is that many of them still have links with and have relatives in Israel. Israeli Governments and businesses saw that the UK was a Jewish-friendly country with which they could do business. I worry that that is now under threat with the despicable rise of antisemitism against the very community of whom we should be most proud in terms of what it has done for the UK. I am appalled to see those vile people in our streets celebrating the death of 1,200 Jews in the massacre on 7 October and cheering the murders in Manchester and Bondi Beach, leading the chief constable of Greater Manchester to say:

“The intolerable has become normalised, and has almost become accepted as the way that things are”.


We must not permit the intolerable to become normal. To those demonstrators, I say this: you have no right to protest until those whom you champion do what hundreds of good Jews have done for this country over the centuries.

I am proud to support Israel and stand with Jewish people in the UK. The work of British Jews and Israel over the past 60 years has made this country better through peaceful civic contribution—not by demanding special rights or committing acts of terrorism. They all deserve our respect, our protection and our increasing trade with them.