Britain will recognise the state of Palestine in September unless the Israeli government takes substantive steps to end the "appalling situation" in Gaza and meets other conditions, British Prime Minister Keir Starmer told his cabinet on Tuesday according to a government statement.

"He said that the UK will recognise the state of Palestine in September, before UNGA (United Nations General Assembly), unless the Israeli government takes substantive steps to end the appalling situation in Gaza, reaches a ceasefire, makes clear there will be no annexation in the West Bank, and commits to a long-term peace process that delivers a Two State Solution," the statement said.

"He reiterated that there is no equivalence between Israel and Hamas and that our demands on Hamas remain, that they must release all the hostages, sign up to a ceasefire, accept that they will play no role in the government of Gaza, and disarm."

Starmer took the decision after recalling his cabinet during the summer holidays on Tuesday to discuss a new proposed peace plan being worked on with other European leaders and how to deliver more humanitarian aid to Gaza.

Successive British governments have said they will formally recognise a Palestinian state when the time is right, without ever setting a timetable or specifying the necessary conditions.

With warnings people in Gaza are facing starvation, a growing numbers of lawmakers in Starmer's Labour Party have asking him to recognise a Palestinian state to put pressure on Israel.