Sir Keir Starmer insisted he was not rewarding Hamas as he announced that the UK formally recognises Palestine as a state.

The Prime Minister announced the decision in a video message on Sunday afternoon at the same time that Canada and Australia also recognised Palestinian statehood.

He said: “Let’s be frank. Hamas is a brutal terror organisation. Our call for a genuine two-state solution is the exact opposite of their hateful vision. We are clear this solution is not a reward for Hamas, because it means Hamas can have no future, no role in government, no role in security.”

The move means that Palestine, which is formed of the West Bank and Gaza, is entitled to an official embassy in the UK and will be given full diplomatic rights in Britain.

Critics said it was a “reward for terrorism” and will have no immediate impact on the war in Gaza, while the families of hostages held by Hamas has said it will “complicate” the return of their relatives.