A series of guidelines aimed at prohibiting local authorities from boycotting Israeli goods has been revealed by the government.
They ban councils, public bodies and university student unions from boycotting "unethical" companies.
The plan could see publicly funded institutions face sanctions if they refuse to buy goods and services from firms producing goods in Israeli settlements in the West Bank.
Penalties are expected to include fines and the cancellation of government contracts.
A spokesman for Labour leader Jeremy Corbyn attacked the announcement, calling it "an attack on local democracy" and comparing it to the response to apartheid South Africa.
Cabinet Office Minister Matt Hancock issued the new guidance during a visit to Israel this week. Writing in the JC, Mr Hancock said boycotts of Israeli goods "fuel antisemitism" and "weaken integration".
Board of Deputies president Jonathan Arkush said he "welcomed the announcement that legislative steps are to be taken against boycotts of Israel.
"Boycotts are objectionable, counter-productive and divisive on every level."
But Mr Corbyn's spokesman argued: "People have the right to elect local representatives able to make decisions free of central government political control. That includes withdrawal of investments or procurement on ethical and human rights grounds.
"This government's ban would have outlawed council action against apartheid South Africa. Ministers talk about devolution, but in practice they're imposing Conservative Party policies on elected local councils across the board."
The War on Want charity, which helped set up the boycott, sanctions and divestment movement, also condemned the move.
It launched a petition which had received more than 15,000 signatures by Wednesday.
Conservative Friends of Israel chairman Sir Eric Pickles accused the Labour Party of encouraging "councils to pursue their own militant foreign policies at the expense of Britain's economic and national security".
Labour Friends of Israel chair Joan Ryan said boycotts were "wrong in principle and do nothing to advance the cause of peace or counter violence and extremism".
The plans were first announced last October ahead of the Conservative Party's annual conference.
