The British government is preparing a legislation that will prevent public bodies from boycotting unethical goods, such as those from illegal settlements in Israeli-occupied West Bank, Palestine, under a plan expected to be announced later Monday, local media reported.
Publicly funded institutions such as local municipalities and universities will face stiff penalties if they bar products from companies involved in the arms trade, fossil fuels, tobacco or West Bank settlements, The Independent newspaper reported, citing ministers.
The proposals -- due to be announced by Cabinet Office Minister Matthew Hancock -- are being put forward on the grounds that bans on products are harming community relations and fuelling anti-Semitism.
"The new guidance on procurement combined with changes we are making to how pension pots can be invested will help prevent damaging and counter-productive local foreign policies undermining our national security, Hancock told The Independent.
Some public bodies around the UK have refused to buy goods from Israeli settlements in recent years and they would have to reverse those decisions after the legislation.
In Leicester, a city in the East Midlands, elected officials agreed in 2014 that the municipality would not buy settlement goods. Same year the devolved government in Scotland issued a notice discouraging trade and investment with settlements.
The government's plan was criticised as an attack on local democracy.
Amnesty Internationals Economic Relations Program Director Peter Frankental said the proposal could encourage human rights abuses.
"All public bodies should assess the social and environment impacts of any company with whom they choose to enter into business relationships," he told The Independent. "Wheres the incentive for companies to ensure there are no human rights violations such as slavery in their supply chains, when public bodies cannot hold them to account by refusing to award them contracts?
Israeli settlements in the West Bank, East Jerusalem and the Golan Heights -- lands occupied by Israel in 1967 -- are considered illegal by the international community and a major impediment to peace with Palestinians.