Keir Starmer's controversial Palestine decision could cost £2trn in reparations

Sir Keir Starmer's confirmation that the UK will recognise a Paestinian state has been met with warnings over the financial repercussions of such a historic, if largely symbolic, move. The Prime Minister said the announcement would contribute to "the hope of peace" for Palestinians and Israelis caught up in the Gaza conflict. The Government also acknowledged that the recognition would not abate the humanitarian crisis on the ground in Gaza but suggested it could safeguard the prospect of a lasting two-state solution to the Israel-Hamas war.

Mr Starmer's decision has been criticised from the opposition benches, with Kemi Badenoch accusing him of "rewarding terrorism" but it has also been questioned by legal experts, who warn that the emblematic statement could ultimately cost trillions of pounds. Mahmoud Abbas, Palestinian Authority President, has reportedly demanded "reparations in accordance with international law" from the UK, for the land Britain relinquished control over after the Second World War.

International law experts have estimated the cost, based on the value of the land which was under British control from 1917 to 1948, as roughly £2 trillion, about the size of Britain's total economy, according to the Daily Mail.

In a video message released by Downing Street on Sunday, Mr Starmer said: "We recognised the State of Israel more than 75 years ago as a homeland for the Jewish people. Today we join over 150 countries who recognise a Palestinian state also.

"We must channel our efforts, united together in hope, behind the peaceful future that we want to see: the release of the hostages, an end to the violence, an end to the suffering and a shift back towards a two-state solution as the best hope for peace and security for all sides."

However, a spokesperson for Israel's Prime Minister Benajmin Netanyahu condemned the move and said Hamas did not want a state alongside Israel but "a state instead of Israel".

The Israeli foreign ministry added in a statement: "Recognition is nothing but a reward for jihadist Hamas."

The ongoing conflict in the Middle East, that broke out when the Hamas terror group attacked Israel on October 7, 2023, has killed at least 65,208 people and wounded 166,271 in the near-two years since it began.

The International Criminal Court issued arrest warrants for Mr Netanyahu and former Israeli Defence Minister Yoav Gallant for war crimes and crimes against humanity in Gaza last year, and the country also faces a genocide case at the International Court of Justice.

Israel has continued to demand the release of all 48 hostages held in Gaza, but the families of those yet to be freed have criticised their Prime Minister for continuing to fight in the region rather than negotiating an end to the war.

Ilay David, brother of hostage Evyatar David, who was shown looking emaciated in a Hamas video released last month, said the UK's recognition of Palestine wouldn't help to bring an end to the conflict, however. "This ... gives Hamas power to be stubborn in negotiations," he said. "That is the last thing we need right now."