UK may recall Israel envoy over settlement plan Israel is to press ahead with development in the area known as E1 east of Jerusalem, above. The move would cut off East Jerusalem from the West Bank. Photograph: Jim Hollander/EPA Britain has summoned Israel's ambassador in London, and is considering the possible recall of its ambassador to Tel Aviv, in response to Israel's announcement of settlement expansion. Israel authorised 3,000 additional settler homes following the vote by the United Nations general assembly to recognise the Palestinian state. The recall of the British ambassador would be a dramatic and unprecedented rebuke to the Israeli government, whose isolation was sharply illustrated by the overwhelming backing for the state of Palestine in New York last week. Only eight countries out of 193 rallied to Israel's side in opposing the move. Britain is furious at Israel's decision to take punitive measures, including the authorisation of the new homes and the development of land east of Jerusalem known as E1 for settlement construction. A Foreign Office spokesperson said: "We deplore the recent Israeli government decision to build 3,000 new housing units and unfreeze development in the E1 block. This threatens the viability of the two-state solution. We have called on the Israeli government to reverse this decision. The Israeli ambassador to London, Daniel Taub, has been formally summoned to the Foreign Office this morning by the minister for the Middle East, Alistair Burt. The minister set out the depth of the UK's concerns. Any decision about any other measures the UK might take will depend on the outcome of our discussions with the Israeli government and with international partners including the US and EU. The development of E1 has been frozen for years under pressure from the US and EU. Western diplomats regard it as a "game-changer" as its development would close off East Jerusalem - the future capital of Palestine - from the West Bank. Britain has demanded that Israel rescind the decision. The UN secretary general, Ban Ki-moon, said the settlement expansion plans "would represent an almost fatal blow to the remaining chances of securing a two-state solution." The EU foreign affairs chief, Catherine Ashton, said such expansion "may represent a strategic step undermining the prospects of a contiguous and viable Palestine with Jerusalem as the shared capital of both it and Israel." The British Foreign Office is understood to be considering a range of options, including the recall of its ambassador, Matthew Gould, and the consul general, Vincent Fean, for further discussions. France is also considering similar action, and on Monday summoned Israel's ambassador to Paris. Britain would be more inclined to forge ahead with such a dramatic diplomatic rebuke in co-ordination with other EU countries. French foreign minister Laurent Fabius said Israel's plans were a "new area of colonisation" and, if confirmed, would "sap the necessary confidence in a resumption of talks." He said: "I call on the Israeli authorities to abstain from all decision regarding this and to show clearly their willingness to restart negotiations." He summoned the Israeli ambassador to France, Yossi Gal, to express his unhappiness over the project. Officials were said to be looking for a way to "mark their disapproval." French media reported that London and Paris were considering joint action which would send a "strong diplomatic signal." However, Paris refused to confirm rumours that it was planning to pull out its ambassador. "There are other ways of marking our disapproval," said a ministry spokesperson. France, Britain and the European Union have all protested directly to the director general of the Israeli Foreign Affairs ministry Rafi Barak. Other steps under consideration are sanctions against settlements in the West Bank and East Jerusalem, including tougher measures on the labelling of settlement produce exported to Europe, and the suspension of strategic dialogue meetings. The UK and other EU countries had warned Israel against taking punitive action in response to the UN vote. A statement issued by the British embassy in Tel Aviv said: "The foreign secretary has consistently made it very clear that the UK would not support a strong reaction to Thursday's UNGA resolution that undermined the prospects for negotiations and efforts to build a strong foundation for the peace process. The recent Israeli government decision to build 3,000 new housing units threatens the two-state solution and makes progress through negotiations harder to achieve. We have called on the Israeli government to reconsider. The Israeli cabinet unanimously rejected the UN vote at its weekly meeting on Sunday. It described the West Bank as "disputed territory" over which the Jewish people had "a natural right." Israel's Channel 2 reported that Rahm Emanuel, President Obama's former chief of staff, had described the behaviour of the prime minister, Binyamin Netanyahu, as "unfathomable."