Sir Keir Starmer has been warned Israel could withdraw defence and security co-operation if the UK proceeds with the Prime Minister's plan to recognise Palestine.
There are concerns the move could undermine national security with the Israeli Government considering various options if Britain continues with Palestinian recognition next month.
Starmer has been warned that he should "carefully consider" the ramifications of recognising Palestine.
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"London needs to be careful because (Benjamin Netanyahu) and his ministers have cards they could play too," a diplomatic source told The Times.
"Israel values its partnership with the UK but recent decisions mean it is coming under pressure and the UK has a lot to lose if Israel’s Government decides to take steps in response."
The Israeli Government had already warned the Prime Minister was handing Hamas a "prize for terror" by recognising Palestine.
Meanwhile, Starmer has already urged Prime Minister Netanyahu to reconsider his plans to completely take over Gaza City and said the move would only bring more death and destruction to the region.
Sir Keir Starmer has been criticised by the Israeli Government
|REUTERS
In a meeting with Foreign Secretary David Lammy, the Vice President JD Vance said the US has "no plans" to recognise a state of Palestine.
Vance said: "Obviously the United Kingdom’s going to make its decision. We have no plans to recognise a Palestinian state. I don’t know what it would mean to really recognise a Palestinian state, given the lack of functional government there."
The Vice President said the White House's two main intentions were to ensure Hamas "cannot attack innocent Israeli civilians ever again" and that they needed to address the "terrible images of the humanitarian crisis in Gaza."
He said: "Obviously, it’s not an easy problem to solve, or it would have already been dealt with, but we share, I think, that focus and that goal. We may have some disagreements about how exactly to accomplish that goal, and we’ll talk about that today."
LATEST DEVELOPMENTS ON THE WAR IN GAZA
Vice President JD Vance and British Foreign Secretary David Lammy | REUTERS
Protests broke out in Tel Aviv against the ongoing war in Gaza
|REUTERS
After the announcement Israel would take control of Gaza City, Germany announced it would halt exports of military equipment to Israel that could be used in the heavily bombarded enclave.
Meanwhile, opposition leader in Israel Yair Lapid called the decision to send IDF forces into Gaza City a disaster, saying it defied the advice of military and security officials.
He accused hard-right ministers Itamar Ben Gvir and Bezalel Smotrich of dragging Netanyahu into a prolonged campaign that would result in the deaths of hostages and soldiers.
Protests broke out in Tel Aviv, with Israelis accusing their own Government of committing genocide in Gaza, a charge which Netanyahu's administration strongly denies.
The Israeli Prime Minister told US media Israel did not want to keep the Gaza Strip, but to establish a "security perimeter" and to hand over the territory to Arab forces.
Palestinian boys inspect the site of a morning Israeli strike on a house, in Gaza City
|REUTERS
There are 50 hostages still held in Gaza, of whom Israeli officials believe 20 are alive. Most of those freed so far emerged as a result of diplomatic negotiations.
Talks toward a ceasefire that could have seen more hostages released collapsed in July.
A senior Palestinian official said Hamas had told Arab mediators an increase in humanitarian aid entering Gaza would lead to a resumption in ceasefire negotiations, adding that taking Gaza City would amount to "a new war crime".
Israeli officials accuse Hamas of seizing aid to hand to its fighters and to sell to finance its operations, accusations the militant group denies.
Palestinians inspect the site of an overnight Israeli strike on a house, in Gaza City
|REUTERS
Most of Gaza's population of about two million has been displaced multiple times over the past 22 months and aid groups are warning that the enclave's residents are on the verge of famine.
Aya Mohammad, 30, who, after repeated displacement, has returned with her family to their community in Gaza City said: "Where should we go? We have been displaced and humiliated enough. You know what displacement is?
"Does the world know? It means your dignity is wiped out, you become a homeless beggar, searching for food, water and medicine."
Israel’s military offensive, after the attack on October 7, 2023, has killed at least 61,000 Palestinians, according to Gaza’s health ministry, most of them civilians.
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