I think this is as far as the government should ever go if it does try and send some kind of signal to Israel. The idea of sanctions hurting every Israeli , including the families of the October 7th victims, would be simply wrong. To damage the economy of Israel at this time of war would be morally wrong and simply lead to other countries improving trade links.
Our government should not be beholden to a pro Palestinian mob and make long lasting commitments that would reward Hamas for one of the most terrible if not the most terrible terrorist event in history.