Local councils, public bodies and even some university student unions are to be banned by law from boycotting “unethical” companies, as part of a controversial crackdown being announced by the Government.
Under the plan all publicly funded institutions will lose the freedom to refuse to buy goods and services from companies involved in the arms trade, fossil fuels, tobacco products or Israeli settlements in the occupied West Bank.
Any public bodies that continue to pursue boycotts will face “severe penalties”, ministers said.
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Senior government sources said they were cracking down on town-hall boycotts because they “undermined good community relations, poisoned and polarised debate and fuelled anti-Semitism”.
But critics said the move amounted to a “gross attack on democratic freedoms”.
A spokesman for the Labour leader Jeremy Corbyn said: “The Government’s decision to ban councils and other public bodies from divesting from trade or investments they regard as unethical is an attack on local democracy.