Britain’s business minister has pledged to strengthen the ties between Israel and the UK.

John Hutton, Secretary of State for Business, Enterprise and Regulatory Reform, told the British-Israel Chamber of Commerce’s annual dinner: “We must continue to actively encourage those people committed to the realisation of an Israel free from terror and at peace for generations to come, alongside a viable, independent and prosperous Palestinian state.

“Only then can Israel truly unlock its economic potential. And through growth and increased co-operation secure a lasting peace and fulfil the rising aspirations of its people.”

He said Israel’s economy grew by eight per cent in the last quarter of 2006, the fastest of any Western nation. In 2007, it grew by more than five per cent. “And it now has its lowest unemployment rate for decades, along with record levels of inward investment,” he said.