The UK is facing a backlash from the US and Israel over plans for sanctions on Israeli settlements in the West Bank.

Foreign Secretary Ed Miliband is expected to announce them when he sets out a “reset” of the UK’s relations with Israel in a Commons statement on Tuesday as part of a toughened stance under Andy Burnham’s Government.

Ministers have suggested goods coming out of the illegal settlements in the West Bank, a Palestinian territory, could be subject to trade restrictions as part of the changes.

The Prime Minister discussed the Middle East with US President Donald Trump in a phone call on Monday ahead of the intervention, which risks drawing criticism from Washington, Israel’s closest ally.

A Downing Street readout said Mr Burnham had set out “the UK’s commitment to working towards peace and security in the region” and stressed the importance of the two-state solution, but made no mention of how the president responded.

The prospect of the move has already prompted suggestions of retaliation from US and Israeli figures.

US Ambassador to Israel Mike Huckabee called it an “irrational action”.

“I feel like it’s discrimination against the Israeli government. It’s a discrimination against the Jewish people,” he told the BBC’s Today programme.

He added: “I also would tell you that I don’t know if they have thought it through. It’s like throwing a stone and not having an idea of where it’s going to land.

“And I realise, look, the UK is a sovereign country; they can do what they want, but so is the US.”

Israeli foreign minister Gideon Saar meanwhile warned: “If Britain acts against Israel, Israel will act against Britain.”

Itamar Ben-Gvir, Israel’s hard-line public security minister, called on the country’s prime minister Benjamin Netanyahu to publicly recognise the Falkland Islands as “Argentine territory under occupation, which the British violently steal from the Argentine people”.

He wrote on X: “I call upon Prime Minister Benjamin Netanyahu to recognise Argentina’s sovereignty over the Malvinas Islands and to impose sanctions on Great Britain as long as the occupation continues.”

Meanwhile, Israel’s finance minister Bezalel Smotrich called for the expulsion of the British ambassador.

“Expel the British ambassador tonight!,” he wrote on X on Monday evening.

“We will not be a doormat trampled by an antisemitic government, in a country conquered by radical Islam, trying to save itself from economic and social decline by attacking Jews and the State of Israel.

“The British Mandate in the Land of Israel is over.”

Shadow home secretary Chris Philp told the same programme the move was “performative posturing” and difficult to implement because of the issue of distinguishing goods from the West Bank from those from the rest of Israel.

Cabinet minister Pat McFadden insisted the coming measures would be  “specifically targeted”.

“Israel is an important trading partner for the UK. This isn’t intended to be a boycott of all Israeli goods,” he told Sky News.

Tensions in the West Bank have flared in recent months, with Israeli settlers involved in violent disputes with Palestinians.

Labour lost the support of many of its left-wing backers under Sir Keir Starmer over his initial response to Israel’s military action in Gaza following Hamas’s October 7 attack on Israel in 2023.

Prime Minister Mr Burnham, who was among senior party figures to have called for a ceasefire by late October that year, previously suggested he would change the Government’s approach to the conflict soon after coming to office in July.

He has voiced particular concerns about the E1 settlement, where Israel has given final approval for a controversial project that would effectively separate the occupied West Bank from East Jerusalem.

Concerns have also been raised about the impact on the Jewish community in the UK and security co-operation with Israel.

Labour MP Peter Prinsley, the vice chairman of Labour Friends of Israel, meanwhile he had told the Foreign Secretary he was concerned about the risks of such a move.

He told BBC Radio 4’s Today programme: “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, and I think it carries a real risk of increased chances of attacks on the British Jewish community.”

Asked about the intervention, Jonathan Hall KC, the independent reviewer of terrorism legislation, told BBC Newsnight: “From a terrorism perspective, I mean, obviously one’s got to think about international co-operation.”

He added: “That is a really big deal, particularly with Iran, thinking about intelligence. On the other hand, I suppose it’s also true to say that some settler violence does amount to terrorism.”

Mr Hall also expressed concern about the potential impact on Britain’s Jewish communities, adding: “I think there is a risk that if you stir the pot by making Israel a pariah state, then that will bring that flame up again, which we saw.

“Remember, it was only a year ago that there was the attack at Heaton Park. And I’ve been very worried about delegitimising anyone who’s Israeli, certainly, and Jews, many of whom support Israel, and painting a bit of a target on the back.

“Now, I’m sure the government will be very careful, I hope they will be, in the way in which they describe this, but that is a concern.”

Shadow foreign secretary Tom Tugendhat previously said the plans could put Britain’s national security at risk and make it harder to fight terrorism.

He told the Telegraph: “It’s worth remembering that Israel is one of our most important intelligence partners, and has been for many, many years.

“I can tell you, as security minister, a lot of incidents did not happen because of co-operation with intelligence sources in Israel, who helped us to protect British people from terror attacks.”