LONDON

Scotland will halt providing public funds to firms arming Israel, the first minister announced on Wednesday, urging the UK government to withdraw from the proposed UK-Israel Free Trade Agreement, negotiations on which were suspended by London in May.

Speaking to members of Scottish parliament (MSPs) in Holyrood, John Swinney said they will stop providing public money to companies arming Israel.

"We will pause new awards of public money to arms companies whose products or services are provided to countries where there is plausible evidence of genocide being committed by that country," he said. "That will include Israel."

The pause will apply to new grants provided, or investments made, by the Scottish government, Enterprise Agencies and the Scottish National Investment Bank.

"Any defense company seeking support from the Scottish government will have to demonstrate that its products are not involved militarily with Israel," Swinney said.

He called on the British government to review steps to be taking in line with the UK "duty in international law to respond when there is a serious risk of genocide," and withdraw from the UK-Israel Free Trade Agreement.

Swinney also announced a £400,000 ($537,000) grant to Kids Operating Room, a Scottish charity, for the establishment of a Gaza HOPES Field Readiness Hub in Scotland. This funding, he said, will help unlock $15 million of additional funding to deliver a rapidly deployable hospital in Gaza.

He said a further £600,000 with be donated to the UN Office for the Coordination of Humanitarian Affairs (OCHA) led Humanitarian Fund for the Occupied Palestinian Territories.

His remarks came ahead of a parliamentary debate on an amendment tabled by Scottish Greens for immediate boycott of Israel and companies complicit in the genocide in Gaza and the illegal settlements in the occupied West Bank.

Swinney said that without the actions taken today, the Scottish government could be at risk of not operating within the law.

For his part, Anas Sarwar, the leader of Scottish Labour, labelled the situation in Gaza as "beyond intolerable."

"We need the bloodshed to stop right now," he said, calling Israeli Prime Minister Benjamin Netanyahu a "war criminal."

He said Netanyahu, wanted by International Criminal Court for alleged war crimes and crimes against humanity in Gaza, must be held to account and face justice for his actions. He also welcomed UK government's commitment to recognize the state of Palestine.