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Groups deemed extremist under the new definition will be denied access to government funds and banned from meeting ministers and officials.
The definition, drawn up by Communities Secretary Michael Gove, will come into force on Thursday and the government will publish a list of organizations covered by it in the coming weeks.
Entities on the list may only challenge their inclusion on the list by initiating a judicial review in the High Court.
Critics say the measures “create division and foster mistrust” and threaten free speech.
The Islamic Council of Britain said this was “undemocratic, divisive and potentially illegal” and “could define existing Islamic organizations as extremist”.
The new definition defines extremism as “any form of violence, hatred, or “promoting or promoting an ideology based on intolerance.” Democracy and Democratic Rights”.
It also includes people who “intentionally create a permissive environment for others to achieve” any of these goals.
The previous definition, published in 2011, defined extremism as “any vocal or active opposition to fundamental British values, including democracy, the rule of law, individual freedom, mutual respect and tolerance of different faiths and beliefs.” It was described as “against” and “desiring death.” of members of our military. ”
Mr Gove said the new definition would “ensure that governments do not inadvertently provide a platform to those who seek to subvert democracy and deny others fundamental rights”.
He added that this is the first in a “series of measures to counter extremism and protect democracy.”
Labor said the new definition was “insufficient” and called for a thorough counter-extremism strategy and hate crime action plan to “put words into action to keep us safe”.
Angela Rayner, the party’s deputy leader and shadow communities secretary, said: “This is a serious issue that requires serious action and tinkering with new definitions is not enough.” The government’s counter-extremism strategy is now nine years out of date and has repeatedly failed to define Islamophobia.
“Suggestions that the government is engaging with groups it deems extremist raise serious questions about why it took so long to act.”
On Wednesday, the Archbishops of Canterbury and York warned that instead of “providing clarity or creating a conciliatory tone”, the definition could “vilify the wrong people and risk further division”. uttered.
Conservative Baroness Warsi criticized the move, calling it a “divide and conquer approach” aimed at “creating division and fostering mistrust”.
Zara Mohammed, general secretary of the Islamic Council of Britain, said: “A wide range of British society will see through the government’s divisive extremist proposals.”
“Extremism is a grave concern and we are all opposed to it, despite the efforts of bigots to suggest otherwise through baseless accusations.”
She added: “With elections looming, it is no surprise that the government is resorting to this desperate tactic in the culture war.”
with agency