Liberal Democrats Urge Government to Ban Settlement Trade and Impose Stronger Sanctions Over West Bank E1 Settlement Scheme

​Liberal Democrat MPs, led by Layla Moran MP, have written to the Foreign Secretary demanding concrete policy changes from the UK Government regarding the escalating crisis in the Middle East.

​While the party welcomed the Government’s condemnation of the Israeli authorities' publication of tenders for the controversial E1 settlement units in the occupied West Bank, the MPs argue that rhetoric must be matched by immediate, tangible action. They warn that the expansion project poses a severe, critical threat to the viability of the two-state solution and lasting peace in the region.

​"The illegal E1 settlement scheme will critically endanger the two state solution and peace in the Middle East. The Government must take strong action in response, including a ban on all trade with illegal settlements," stated Layla Moran MP

​Legal Obligations and International Law

​The letter emphasises that under international law, settlements in the occupied territories are entirely illegal, a position repeatedly affirmed by the UN Security Council, most notably through Resolution 2334. Furthermore, the MPs point to the International Court of Justice’s (ICJ) Advisory Opinion of July 2024, which established explicit legal obligations for third-party states like the United Kingdom.

​While the Liberal Democrats praised the UK's September 2025 recognition of the State of Palestine as an important diplomatic milestone, they maintain that recognition alone does not fulfill the country's broader legal duties under international law.

​Key Demands on the Government

​In addition to halting the E1 tender and addressing ongoing humanitarian concerns and settler violence in the West Bank and Gaza, the letter outlines several firm policy steps for the UK Government:

​Trade Restrictions: Introduce an immediate ban on the import of goods and services produced in illegal settlements, alongside a review of existing trade arrangements to prevent them from facilitating settlement activity.

​Targeted Sanctions: Impose sanctions on individuals, entities, and companies participating in the E1 project including any UK financial institutions providing direct funding for settlement construction.

​Arms Controls: Enforce a full embargo on all arms licenses, including parts for F-35 aircraft, and establish a "presumption of denial" for countries listed on the Foreign, Commonwealth & Development Office (FCDO) Human Rights Priority list.

​Transparency and Accountability: Publish the Government’s internal assessment of UK legal obligations following the ICJ's 2024 Advisory Opinion, and clarify the steps being taken to meet legal obligations regarding the prevention of genocide in Gaza.

​The Liberal Democrats conclude that the Government has a critical window of opportunity to align its foreign policy with its legal responsibilities to the Palestinian people and urged the Foreign Secretary to respond with decisive measures.