The British prime minister said the United Kingdom "absolutely recognises" Israel's right for self-defence against the activities of "extremists and terrorists".
But after the deaths of 100 Palestinians during the protests, it was time to "find a way through".
An incensed Corbyn said Najjar's killing was "the latest tragic reminder of the outrageous and indiscriminate brutality being meted out, under orders from the Netanyahu government". To make a statement about Gaza on the day that acres and acres of Israeli land had been burnt by rioters launching firebombs attached to kites, with no mention of Hamas, Islamic Jihad, Egypt or the continued attempt to breach Israel's border from below ground and above is exactly as Mr Corbyn said, "morally indefensible".
In his statement, Corbyn said the US Embassy move to Jerusalem had "in violation of global agreements" had demonstrated that "the US has no claim to be any kind of honest broker for a political settlement".
No Israeli troops were injured and the incident was being investigated, the army said.
A sustainable, just peace between Israelis and Palestinians, that recognises the rights and security of all, and puts an end to the continuing dispossession of the Palestinian people, is an interest we all share, in the Middle East and far beyond.
On Wednesday, she welcomed Mr Netanyahu to Downing Street, then broached the subject with him face-to-face, and in front of the cameras.
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The statement from Prime Minister Benjamin Netanyahu's office on Sunday didn't disclose how much would be deducted. It has previously threatened to withhold the tax money over Palestinian actions it opposes.
"As you know, the United Kingdom absolutely recognises the right that Israel has for self-defence against the activities of extremists and terrorists".
"I think we can find ways to work together to achieve both goals", Mr Netanyahu said.
He added: "We are not witnessing a peaceful protest".
"This is not a non-violent protest, quite the contrary".
During his meeting with French President Macron, the Israel Prime Minister urged France to also impose economic sanctions to help dissuade Tehran from pursuing a nuclear weapon.
On Tuesday, Iran informed the United Nations nuclear watchdog it will increase its nuclear enrichment capacity within the limits set by the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal.
"But we do recognise that there are other issues that need to be addressed in relation to Iran - its destabilising regional activity in countries like Syria and Yemen and also the proliferation of ballistic missiles".