British-Israeli relations have plummeted further after an Israeli MP called for a boycott of British products.

Kadima MK Ronit Tirosh has led an initiative in the Knesset against Britain’s decision to label products from the West Bank as being made by Jewish settlers or Palestinians.

A petition signed by 40 of the 120 MKs is to be sent to the British government, urging them to reconsider the decision.

Ms Tirosh said: “I call on Israelis to think twice before buying British products if the decision is not rescinded by the British government."

"I urge official Israeli representatives to abstain from using British airlines as long as the British government treats Israel as though two states existed, one within the green line and another outside."

She also expressed her dismay at the labeling singling out Jews and compared it to persecution in early Nazi Germany, saying: “We intend to protest anything that singles out Jews as this kind of method brings back very bad memories."