Israel: E1 Zone Expansion

Monica Harding Excerpts

Wednesday 1st July 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Monica Harding (Esher and Walton) (LD)]

Well, here we are again. The Liberal Democrats have welcomed the Government’s historic decision to recognise the state of Palestine, which we have long called for. We have welcomed more recent statements of intent, including just 10 days ago in this House, but such statements are utterly hollow without action, especially when we know that the Israeli security cabinet’s stated aim is to make a future Palestinian state unviable.

We have asked these questions before, but we will ask them again. When will the Government put forward a clear plan to halt and reverse the illegal expansion into East Jerusalem and the west bank? When will they respond to the 2024 ruling of the International Court of Justice? When will they introduce a package of sanctions including fines for any UK firms that bid for contracts for settlement construction in E1 or anywhere in the Occupied Palestinian Territories? Will they expand that to cover any UK financial institution that finances or facilitates UK companies’ involvement in construction or other services? When will the UK move fast to ban all UK trade in goods and services with illegal Israeli settlements?

[Mr Falconer]

I think that I have already addressed most of those questions. I have just confirmed again, as I did in the statement, that we are in discussions about further measures in relation to west bank goods. We have set out business guidance, and the Foreign Secretary announced the fourth round of sanctions in June.

The hon. Lady referred to speed. I think she will acknowledge that we have moved rather more quickly than some of our partners and allies. I am pleased to see many of them taking some of the measures that I announced in the House in 2025, including sanctions on the Ministers that I mentioned. We are moving with alacrity in response to what we see.

The question at issue in the urgent question is about the E1 settlement expansion. It is rumoured that there is now a timetable for those tenders. I have been as clear as I can be from the Dispatch Box that we are watching very carefully who bids for those tenders. We have been clear repeatedly with the Israeli Government about our view on the E1 expansion; I have repeated it today. The question before us is whether, in the run-up to the Israeli election, commercial entities choose to bid for those tenders. That is what we will be watching carefully and taking action in response to.