Local councils will not be allowed to boycott Israeli firms without the approval of the government, a minister has confirmed.
James Cleverly, the conservative shadow communities secretary, had asked the government whether the Department for Housing, Communities and Local Government would “take any Best Value or regulatory intervention against local authorities which adopt anti-Israeli boycotts or divestment policies.”
In the recent local elections, several Green and Labour candidates expressed support for divestment from companies linked to Israel.
In a reply to Cleverly’s written parliamentary question on Tuesday, Alison McGovern, the local government minister, confirmed that local authorities were not permitted to act unilaterally to boycott the Jewish state.
“Cabinet Office Procurement Policy Note 01/16 remains in force which prohibits procurement boycotts by public authorities against Israeli firms and firms which trade with Israel unless formal government sanctions are in place”, her reply said.
The note, published in 2016 under the then-Conservative government, makes clear that: “boycotts in public procurement are inappropriate, outside where formal legal sanctions, embargoes and restrictions have been put in place by the UK Government.”
It goes on to say: “Public procurement should never be used as a tool to boycott tenders from suppliers based in other countries, except where formal legal sanctions, embargoes and restrictions have been put in place by the UK Government. There are wider national and international consequences from imposing such local level boycotts. They can damage integration and community cohesion within the United Kingdom, hinder Britain’s export trade, and harm foreign relations to the detriment of Britain’s economic and international security. As highlighted earlier, it can also be unlawful and lead to severe penalties against the contracting authority and the Government.”
McGovern hinted that an intervention from the government was a possibility should certain conditions be met.
“Decisions to intervene in a local authority pursuant to the Local Government Act 1999 are only be taken when there are significant, systemic and extensive indications of Best Value failure”, she said.
The relevant government guidance states that: “The Secretary of State must be satisfied that an authority is failing to carry out its functions in compliance with the Best Value Duty before intervening on a statutory basis”.
Earlier this year, Steve Reed, the communities secretary, suggested that councils who support the BDS movement could open themselves up to legal action from companies affected.
“Councils should stay out of foreign conflicts and get on with the job of delivering local services”, he said at the time.
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