ByJERUSALEM POST STAFF

Labour councils could face legal action unless they stop boycotting Israeli businesses, UK Communities Secretary Steve Reed has warned.

This comes after multiple local authorities voted not to work with firms that they deem to be “complicit in Israeli war crimes, supply arms to Israel, or somehow benefit from activity in the West Bank." Examples are councils in Newcastle, Oxford, and Islington, which have all passed motions in support of the BDS movement.

The Telegraph first reported over the weekend that Reed informed local authorities that suppliers who lose money risk being sued and could be required to pay substantial damages. The press officer of the Ministry of Housing, Communities and Local Government separately confirmed this to The Jerusalem Post on Tuesday.

“Councils should stay out of foreign conflicts and get on with the job of delivering local services," said Reed.

The Ministry of Housing, Communities and Local Government has previously published guidance prohibiting boycotts against Israeli firms or firms that trade with Israel, outside of what has already been enacted by the government itself. It said that affected companies would be able to sue councils under the Procurement Act 2023.

Demonstrators hold a Palestinian flag in front of police officers, on the day of the ''Lift The Ban'' rally organised by Defend Our Juries, challenging the British government's proscription of ''Palestine Action'' under anti-terrorism laws, in Parliament Square, in London, Britain, September 6, 2025.
Demonstrators hold a Palestinian flag in front of police officers, on the day of the ''Lift The Ban'' rally organised by Defend Our Juries, challenging the British government's proscription of ''Palestine Action'' under anti-terrorism laws, in Parliament Square, in London, Britain, September 6, 2025. (credit: CARLOS JASSO/REUTERS)

Yet, in December 2025, Newcastle City Council voted for a motion committing to “thorough review of the Council’s financial ties and procurement practices to identify whether any goods or services are being provided by companies which are complicit with the genocide and/or illegal occupation” and to urge Tyne & Wear Pension Fund to “divest as a matter of urgency from all companies that are complicit in the genocide in Gaza and the illegal occupation of the West Bank and east Jerusalem.”

The month before, in November, Nottingham City Council voted for a motion to “immediately divest any funds from companies complicit in Israel’s crimes against Palestinians.”

Twenty-seven councils in 2025 alone passed BDS votes.

Growing antisemitism across Britain

Sir James Cleverly, the shadow communities secretary, told The Telegraph that “The Government is turning a blind eye to growing antisemitism in town halls across the country.

“Labour councils are bringing in Israel boycotts in a cynical, sectarian attempt to win votes. Those boycotts are frequently a cover for attacking Jewish people and culture."

“Keir Starmer pledged to eradicate anti-Jewish hate from his party – but it clearly persists at the local level. He must act to bring his councillors under control. It is not the job of the local government to set UK foreign policy," he added.