Foreign Secretary Ed Miliband has urged businesses and individuals not to bid for construction work on Israel’s E1 settlement project in the occupied West Bank, warning that those involved could face sanctions under newly created UK powers.
In an official Foreign, Commonwealth and Development Office statement on Monday 19 October 2026, issued on the deadline for E1 construction bids, Miliband said the Israeli government’s decision to open the tenders threatened the prospect of a two-state solution.
Warning issued on tender deadline
The Foreign Secretary said the UK had created new powers enabling sanctions against individuals and companies involved in constructing illegal settlements, including projects such as E1. He urged potential bidders not to proceed and warned of possible legal and reputational consequences.
The statement does not identify any company as having submitted a bid, nor does it announce a new sanctions designation against any E1 contractor. The warning concerns potential exposure to sanctions; it is not confirmation that penalties have already been imposed.
Why the E1 project is controversial
E1 is an area east of Jerusalem in the Israeli-occupied West Bank. The UK government and other opponents of settlement expansion argue that development there would undermine the territorial continuity needed for a viable Palestinian state and weaken prospects for a negotiated two-state solution.
Israel’s government has pursued settlement construction in the area despite international objections. The dispute forms part of a broader disagreement over Israeli settlement policy, the status of occupied territory and the future of Israeli-Palestinian negotiations.
UK government sets out wider approach
Miliband also referred to the government’s commitment to introduce legislation banning imports of goods from illegal settlements and to take action concerning services that finance or facilitate them. Those commitments should not be confused with legislation already enacted through today’s statement.
The Foreign Secretary condemned recent settler violence in the West Bank and reiterated the government’s opposition to the displacement of Palestinians and continued unlawful occupation.
What happens next?
The immediate question is whether any companies or individuals proceed with the E1 tenders and whether the UK subsequently takes action under its sanctions powers. No decision to sanction an identified bidder was announced in the 19 October statement.
Reuters separately reported the warning on Monday, confirming the government’s intervention on the day of the tender deadline.