The UK will retain a reduced diplomatic presence in Jerusalem in what is being seen as a step back from the brink amid a deterioration in relations between the two countries.
Following the UK’s sanctions on settlements, Israel has introduced a series of countermeasures including the closure of the British Consulate in Jerusalem.
There had been rumours that, in a further escalation, Britain would seek to expel Israeli diplomats from the country’s embassy in London.
However, in a statement on Wednesday morning, foreign secretary Ed Miliband said that the British Consulate in Jerusalem – which has been in in the city since before the establishment of the state of Israel – would not be closing, but would be re-branded and have fewer staff.
He said in a statement: “Following discussions with the Government of Israel, our Consulate General building will not be closing, and will be known as the UK Mission, Jerusalem from today.
“The UK Mission, Jerusalem is independent, operational, and will continue to deliver vital services and our work with the Palestinian people. This will ensure that we maintain our longstanding British presence and the UK's role in support of a two-state solution.”
He said that Britain had “temporarily withdrawn a number of staff and families to ensure their safety and security” but would be seeking to “build back up our presence”.
He added that the UK “will not take reciprocal action while such discussions are underway and credible”.
Miliband defended his measures targeting Israeli settlements, claiming they were necessary “in support of a two-state solution to deliver peace and security for the people of Israel and Palestine”.
Israel’s foreign minister, however, said that his country had established a clear principle: “It is not possible to act against Israel without Israel taking appropriate measures in response.”
The retaliatory measures include: “1.The removal of the British representatives from the International Gaza Support Centre in Kiryat Gat. 2.The termination of British activity to train Palestinian Authority forces in Judea and Samaria. 3.The denial of entry to Israel of 12 British elected officials and other British citizens involved in antisemitic and anti-Israel activity, as well as those who deny our very right to exist. 4.The British Consulate in Jerusalem is ending its operations today. Accordingly, the sign of the British Consulate in Jerusalem has been removed.”
Sa’ar claimed that he did not want to have ended up in the present situation, with relations between Israel and Britain at a low point “but the actions of the UK Labour Government brought us here”.
In a post on X he criticised what he described as “far-reaching sanctions against the communities in Judea and Samaria, as well as additional sanctions on defence exports to Israel. All this was accompanied by hostile rhetoric, including false accusations against Israel, such as accusations of ‘ethnic cleansing.’”
Israel’s top diplomat also blasted Labour over anti-Israel measures adopted since the party took power in July 2024, including a partial arms embargo, “unilateral recognition of a virtual ‘Palestinian state’ in September 2025” and restoring funding to UN Palestinian agency Unrwa.
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