The Palestinian Authority has said it will pay public sector workers 60 per cent of their December salaries this week as it grapples with the longrunning fallout of Israel’s refusal to transfer tax funds earmarked for Gaza.

Funding to the Palestinian Authority, the body which exercises limited governance in the occupied West Bank, has been severely restricted by the months-long dispute over transferring tax revenues Israel collects on behalf of the Palestinians.

Funding from international donors has also been squeezed, falling from 30pc of the $6 billion annual budget to around 1pc, Palestinian Prime Minister Mohammad Shtayyeh said.

“We cannot accept conditions on our money. We will remain committed to the prisoners and martyrs and to our people in the Gaza Strip, not out of favour, but by virtue of our national, religious and moral responsibility,” Shtayyeh said.