Starmer has ‘made a mistake' with plan to recognise Palestinian state
Meanwhile, the Prime Minister reiterated that Hamas must release the hostages, sign up to a ceasefire, disarm and play no role in the government of Gaza.
The Government will then make an assessment in September 'on how far the parties have met these steps', the Prime Minister said.
During a visit to a farm in Little Walden, Essex, on Tuesday, Mrs Badenoch said she would never agree to recognising a Palestinian state while Hamas is still in power in Gaza.
She said: 'Absolutely not. No. Hamas is a terrorist organisation. We should not be creating a new terrorist state.
'This is basic stuff, and I don't understand why Keir Starmer doesn't understand that.'
The Tory leader added: 'Keir Starmer has made a mistake. What we need to focus on now is a ceasefire and getting the hostages home.
'We've been seeing images of a hostage who looks like he's being starved to death, forced to dig his own grave. This is what Hamas is about.
'Now is not the time to reward them for their atrocities and for the massacre they committed on October 7 by giving them statehood recognition.
'We want to see a two-state solution after a peace settlement done in the right way at the right time. It is not the right thing to do now.
'And I'm not surprised that British hostages like Emily Damari have condemned the Government for the approach they've taken.'
Ms Damari, a British-Israeli woman who was held hostage by Hamas for more than a year, has said she believes Sir Keir is 'not standing on the right side of history' after his conditional pledge to recognise Palestine.
Mrs Badenoch's comments came as it was announced a protest will take place in London this weekend opposing Sir Keir's plans to recognise Palestine as a state.
Demonstrators, including some British family members of hostages still held by Hamas, will march on Downing Street calling for the release of the remaining hostages before any talk about the recognition of Palestine.
Marchers will include the relatives of Avinatan Or, who was kidnapped from the Nova music festival with his girlfriend Noa Argamani.
Mr Or's cousin Ariel Felber, from London, said: 'Keir Starmer has failed the hostages and their families by not making it a condition that all the remaining hostages are brought home to their loved ones before he can even entertain talk of state recognition of Palestine.
'He urgently needs to correct this.'
Steve Brisley from Bridgend, Wales, whose sister and nieces were murdered on October 7 and his brother-in-law Eli taken hostage, said: 'As British families of hostages and victims, devastated by the ongoing suffering of our loved ones, our emotional torture has been exacerbated by the suggestion that the UK may recognise a Palestinian state without securing the release of the hostages as an absolute precondition.
'This is not about politics. This is about basic humanity.'
The family members are expected to be joined by Jewish leaders and other supporters on their National March For The Hostages through central London on Sunday afternoon.
Tzipi Hotovely, Israeli ambassador to the UK, said on X that Hamas's actions 'must never be rewarded' as she highlighted the plight of one of the hostages, 24-year-old Evyatar David.
Hamas released a video on Saturday which showed Mr David looking skeletal and hollow-eyed in a dimly lit Gaza tunnel.
Ms Hotovely said: 'He is clearly malnourished and ill-treated. A shadow of his former self, his suffering is unimaginable.
'Like countless others who saw it, I was appalled by the sickening footage of Evyatar being forced to dig his own grave.
'This abhorrent footage shows Hamas for what they are – wicked terrorists who seek to inflict as much death, destruction and suffering on as many Jews and Israelis as they can. Their actions must never be rewarded.'
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