Miliband to Face Criticism as UK Awards £10.7 Million to Settlement-Linked Firms

The UK government has released public contracts totaling £10.7 million to companies with ties to West Bank settlements. These awards surfaced after Al Jazeera investigated spending that occurred following Foreign Secretary Ed Miliband’s September 8 announcement of a new sanctions package.

Miliband told parliament that entities financing or facilitating settlements would face the full weight of UK sanctions. He described the settlements as illegal. Government sources say the measures have not yet taken effect and may require up to nine months to implement.

During this interim period, the government continued to sign deals with firms listed by the United Nations for settlement activities. Motorola Solutions and its subsidiaries received two contracts worth approximately £87,900 for police communications. Israel reportedly uses Motorola technology for security and surveillance in the West Bank.

The largest portion of the spending involves construction. Three subsidiaries of Heidelberg Materials secured 14 contracts totaling £10.4 million for roadworks and resurfacing in England. The company’s Israeli arm, Hanson Israel, owns the Nahal Raba quarry, a site located on land belonging to Palestinian villages.

Other recent awards include an £84,000 contract to Thomas & Adamson International Limited, a subsidiary of French engineering group Egis. The UN lists Egis for supporting settlement maintenance, though the company disputes this inclusion. Breas Medical, owned by Chinese conglomerate Fosun International, also received a £98,000 contract. Fosun International appears on the UN list.

Senior UK government figures privately told Middle East Eye that they intend to implement comprehensive sanctions against construction and real estate services supporting settlement expansion. This plan remains active even if Benjamin Netanyahu leaves office. However, multiple Labour sources accuse civil servants of creating blockages to weaken the measures. Some Foreign Office officials argue the rules should target Israeli firms but exclude British companies with similar ties.

Debate continues over the scope of the sanctions. Some officials suggest excluding companies that operate mostly within Israel proper, focusing only on those in the settlements. Miliband is understood to be determined that the regime not be diluted. A full implementation would require British banks, pension funds, and asset managers to divest from settlement operators and stop providing supporting financial services. The Cabinet Office did not respond to a request for comment.