Labour was accused of putting British Jews at risk on Tuesday after caving in to Left-wing activists demanding sanctions on Israel.

Britain's Chief Rabbi said a trade ban on Israeli settlements in the West Bank was 'truly a dark day for British Jews'.

Sir Ephraim Mirvis said Labour's 'gesture politics', coming just days before the Jewish New Year celebrations, would 'further embolden those, at home and abroad, who use hatred as a weapon against Jews'.

Kemi Badenoch joined the condemnation, saying that Andy Burnham risked 'fanning the flames of anti-Semitism at home' in order to appease those deserting Labour for the Greens.

The Tory leader said the plan risked fracturing relations with a key ally, accusing the PM of 'throwing British interests under the bus to win back Islamist and far-Left activist votes'.

The sanctions were announced by Foreign Secretary Ed Miliband, who accused the Israeli government of supporting the 'ethnic cleansing' of Palestinians by 'terrorist' settlers.

In an outspoken statement, Mr Miliband said there was growing evidence of 'war crimes' by Israel in Gaza. He said Britain would not 'stand by' while Benjamin Netanyahu's government used the creation of 'illegal' settlements to destroy the prospect of a two-state solution to the Middle East crisis.

Jewish Labour MP Peter Prinsley said he had told Mr Miliband personally that the sanctions could put British Jews at risk. 

He told the BBC: 'My fear is that opponents of Israel won't distinguish between Israeli government policy, Zionistic political philosophy and British Jews. 

'As far as they're concerned, the whole thing's the same. It carries a real risk of increased chances of attacks on the British Jewish community.'

Israel accused Labour of 'outrageous lies' and announced it was shutting the British consulate in Jerusalem, alongside banning a dozen MPs.

Ministers were last night also braced for an angry reaction from the White House. Mike Huckabee, US ambassador to Israel, said the sanctions would 'without a doubt' lead to reprisals from the US, including potential trade bans from states such as Florida.

Diplomatic sources told the Daily Mail that officials at Britain's embassy in Tel Aviv warned ministers it was 'not possible' to target goods from the Israeli settlements without hitting the rest of the country. 

In June, then-trade minister Sir Chris Bryant also told MPs it would be 'very difficult' to target goods from the settlements because of the ease with which they could be moved to Israeli or Palestinian areas.

The Government's National Security Adviser Jonathan Powell is also said to have opposed the move, warning it could undermine key alliances. The Conservatives said the 'performative' sanctions on trade worth a mere £40million a year would backfire.

Mrs Badenoch accused the PM of acting to placate Left-wing activists ahead of the party's conference at the end of this month. Next month, Labour then faces a tough challenge from the Green Party in a by-election in Sir Keir Starmer's former North London constituency.

The Tory leader said Labour's 'obsession with Israel' was 'less to do with peace in the Middle East, and more to do with trying to keep the peace in the Labour Party'.

Writing in the Jewish Chronicle, she accused Mr Burnham of reviving the divisive politics of Jeremy Corbyn and said Labour's 'relentless demonisation of the world's only Jewish state risks fanning the flames of anti-Semitism at home'.

Scenes of settler violence against Palestinians have triggered condemnation around the world.

In a statement to MPs, Mr Miliband announced plans for sanctions co-ordinated with France and Canada. He said: 'Britain is not silent in the face of deep injustice and nor is it powerless.'

In total, 11 countries are now set to boycott the Israeli settlements. 

Mr Miliband said goods produced there would be banned. And firms providing services for 'settlement expansion' will face sanctions.

He said the Government could not accept plans for a new 'E1' settlement east of Jerusalem which he said would divide the West Bank and jeopardise creation of a viable Palestinian state.

He said Israeli occupation of areas of the West Bank was 'unlawful' and claimed the sanctions plan was designed to 'salvage the only course for peace and security for Israelis and Palestinians – the two-state solution'.

Mr Miliband said he was 'proud of my Jewishness and unwavering in my support for the state of Israel' and he insisted the Government is committed to tackling anti-Semitism in the UK.