Israel: E1 Zone Expansion

Matt Western Excerpts

Wednesday 1st July 2026 Commons Chamber

12.42 pm

[Matt Western (Warwick and Leamington) (Lab)]

(Urgent Question): To ask the Secretary of State for Foreign, Commonwealth and Development Affairs if she will make a statement on Israel’s planned illegal expansion in the E1 zone in the Occupied Palestinian Territories.

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Mr Hamish Falconer)]

The British Government firmly oppose the E1 settlement plan. It would divide the west bank in two and mark a serious breach of international law. The Prime Minister led 11 other world leaders in a joint statement last month. That condemned the E1 plans, urged the Israeli Government to end settlement expansion, and warned businesses of legal and reputational consequences of participating in construction in E1 and other settlements. We are clear: businesses should not bid for construction tenders in E1 or other settlements.

We are deeply alarmed by the situation in the west bank: illegal settlements continue to expand; settler violence remains at record levels; and the Israeli Government have further entrenched their control. Last month, the Foreign Secretary announced further sanctions in response to that violence in the west bank. That is the fourth package under this Government. We welcome the condemnation of settler violence at the highest levels of Israeli society. Now Israel must conduct swift and transparent investigations into these attacks, and ensure accountability.

The Foreign Secretary also announced that we had updated our business guidance to clearly advise British businesses and citizens not to engage in economic and financial activity in settlements. We have been concerned by efforts to advertise settlement property in the UK and by reports of charitable links between the UK and settlements. I have written to the Advertising Standards Authority and spoken to the Charity Commission about these issues, but I want to reassure the House that while these trends in the west bank continue to worsen, we will continue to take steps to ensure that no one can profit from the sale of land that has been taken unlawfully, that violent settlers are held to account, and that the British Government stand up for the rule of law, for the right of Palestinians to self-determination, and for the prospects for peace and security through a two-state solution.

We are in discussion with partners, including those few countries who have explored how a ban on settlement trade might work. We are looking at further concrete steps to counter settlement expansion and promote peace and security. It is only through a negotiated two-state solution, not unilateral action, that a viable path to long-term peace can be achieved. That path must guarantee security to Israelis and Palestinians alike.

[Matt Western]

Just yesterday, the Israel Land Authority published new dates for the tender for the construction of the proposed E1 settlement zone in the west bank. The bidding period for the tender ends in October, and once the contracts have been awarded, it will become impossible to stop E1. Why is E1 so critical? It is because the proposed settlement would absolutely and permanently destroy any prospect of a true two-state solution. It is a large area of land that would split the west bank from north to south, severing connections between Palestinian communities and East Jerusalem, while forcibly transferring 7,000 Palestinians—itself a war crime under the Rome statute.

A few of us visited just four weeks ago. We saw at first hand the accelerated pace at which Israel is expanding its illegal settlements. A massive 2,000 housing units have been approved since that visit alone according to the United Kingdom chargé d’affaires at the UN on Monday. It is clear that Israel is systematically and deliberately doing all it can to make a two-state solution impossible, and its impunity must end.

Will the Minister make categorically clear today that any businesses or organisations, including financial and insurance institutions, or individuals that participate in or facilitate the construction of the E1 zone, will be sanctioned and not allowed to trade and do business with the UK, and will the Government legislate accordingly as a matter of urgency? Secondly, alongside 139 parliamentary colleagues, I have urged the Minister to end all trading with illegal Israeli settlements. Can I once again urge the Minister to implement a full ban and suspend the free trade agreement with Israel, based on its continued violations of human rights and the prospect of this development?

Palestine is fracturing before our eyes. Our intelligence can see this. The international community must stop E1.

[Mr Falconer]

I thank my hon. Friend for his attention to these issues, and I know that he recently travelled to the Occupied Palestinian Territories to see it with his own eyes. As I have said many times, I will not comment on sanctions from this Dispatch Box, but I have been clear, and the Prime Minister has led 11 other world leaders in being crystal clear, on the implications and consequences if the E1 settlement continues. He and his colleagues were clear in that statement that there would be implications for the businesses themselves. So far we have had word from the Israeli Government about their plans; clearly, businesses in the region will want to consider carefully the warning in the statement last week and the clear commitment from the Dispatch Box in the UK that we will take further measures if the violent action to increase settlements continues in the west bank.