The UK’s consulate in Jerusalem is being downgraded in status to a mission, following a dispute related to British trade sanctions against Jewish settlements in the occupied West Bank.

The UK’s Consulate General building in Jerusalem will not be closing but instead be known as the UK Mission following discussions with Israel, according to a statement by British Foreign Secretary Ed Miliband.

He said the UK has temporarily withdrawn a number of staff and families to ensure their safety and security.

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Israel said it wished for a different outcome, after threatening to close the consulate, but that “the actions of the Labour government have led us to this point.”

“We establish a clear principle: actions taken against Israel will be met with appropriate countermeasures,” Foreign Affairs Minister Gideon Sa’ar said.

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Israel said on Sept 8 that it would shutter the consulate in East Jerusalem following the UK’s decision to ban the import of goods from Israeli settlements in the West Bank.

Sa’ar described the UK’s actions as “hostile rhetoric, including false accusations against Israel, such as charges of ethnic cleansing.”