00:00The UK is facing a fresh diplomatic dispute with Israel over settlement plans in the West Bank.
00:07Foreign Secretary Ed Miliband says Britain will set out a comprehensive reset of policy towards
00:12Israel. He says measures could include stopping UK companies financing, constructing or advertising
00:19new settlements. Israel's Foreign Minister Gideon Saar has warned his country would retaliate if
00:25Britain imposes sanctions. The dispute centres on E1, an area where Israel has opened tenders
00:31for about 1,200 homes. The UK says development there could undermine the possibility of a future
00:37Palestinian state. Ministers say Britain remains committed to a two-state solution, which Israel
00:44rejects.
