Israeli prime minister Benjamin Netanyahu has rebuked David Cameron for calling Israeli settlement policy in parts of Jerusalem “genuinely shocking”.

Speaking at a Likud Party event, Mr Netanyahu said: “My friend David Cameron, who is undoubtedly a friend of Israel, seems to have forgotten a few basic facts about Jerusalem.

“Only Israeli sovereignty guarantees the Arab residents the city roads, clinics, employment and all the other trappings of normal life their brethren do not enjoy elsewhere in the Middle East.”

Mr Cameron had said in Prime Minister’s Questions: “Yes, we are supporters of Israel, but we do not support illegal settlements, we do not support what is happening in East Jerusalem.