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A radical Islamist group that planned a march through Wootton Bassett will be banned under counter-terrorism laws, Home Secretary Alan Johnson has said.
Islam4UK had planned the protest at the Wiltshire town to honour Muslims killed in the Afghanistan conflict.
The government had been considering outlawing the group - Islam4UK is also known as al-Muhajiroun.
A spokesman for Islam4UK told the BBC it was an "ideological and political organisation", and not a violent one.
Mr Johnson said: "I have today laid an order which will proscribe al-Muhajiroun, Islam4UK, and a number of the other names the organisation goes by.
"It is already proscribed under two other names - al-Ghurabaa and The Saved Sect.
"Proscription is a tough but necessary power to tackle terrorism and is not a course we take lightly.
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"We are clear that an organisation should not be able to circumvent proscription by simply changing its name."
Under the Terrorism Act 2000, a group can be banned if it "commits or participates in acts of terrorism, prepares for, promotes or encourages terrorism or is otherwise concerned in terrorism".
Groups can also be outlawed if they "unlawfully glorify the commission or preparation of acts of terrorism".
Islam4UK spokesman Anjem Choudary told BBC Radio 4: "What the people will see is if you don't agree with the government and you want to expose their foreign policy, then freedom quickly dissipates and turns into dictatorship."
He denied Islam4UK members were involved in violence: "I challenge anyone to authentically prove that any of our members have been involved in any violent activities or promoting violent activities or asking anyone to carry out any sort of military operations.
"We are always at pains to stress that we are an ideological and political organisation.
'Whatever price necessary'
"We won't be using those names and those platforms which have been proscribed, but I can't stop being a Muslim, I can't stop propagating Islam, I can't stop praying, I can't stop calling for the Sharia.
"That's something I must do, and ultimately I will pay whatever price I need to for my belief."
Speaking from Lebanon, Omar Bakri Muhammad, founder of al-Muhajiroun, told the BBC the decision to ban the group would "increase the popularity of al-Muhajiroun" and "force them underground".
On Sunday Islam4UK cancelled the march, saying it had "successfully highlighted the plight of Muslims in Afghanistan".
The group denied members had planned to carry 500 empty coffins through the town.
The banning order will come into effect on Thursday and make it a criminal offence to be a member, punishable by up to 10 years in prison.
Shadow home secretary Chris Grayling welcomed the decision to ban Islam4UK.
He said: "We cannot permit any group which propagates the views of banned international preachers of hate and organises hate-filled public protests to operate in Britain.
"Now ministers need to look at how they are going to ban other groups in the UK which are part of broader international networks of extremism."
Earlier this week, Prime Minister Gordon Brown said plans for the march were "disgusting".
Islam4UK had planned the protest at the Wiltshire town to honour Muslims killed in the Afghanistan conflict.
The government had been considering outlawing the group - Islam4UK is also known as al-Muhajiroun.
A spokesman for Islam4UK told the BBC it was an "ideological and political organisation", and not a violent one.
Mr Johnson said: "I have today laid an order which will proscribe al-Muhajiroun, Islam4UK, and a number of the other names the organisation goes by.
"It is already proscribed under two other names - al-Ghurabaa and The Saved Sect.
"Proscription is a tough but necessary power to tackle terrorism and is not a course we take lightly.
FROM THE TODAY PROGRAMME
More from Today programme
"We are clear that an organisation should not be able to circumvent proscription by simply changing its name."
Under the Terrorism Act 2000, a group can be banned if it "commits or participates in acts of terrorism, prepares for, promotes or encourages terrorism or is otherwise concerned in terrorism".
Groups can also be outlawed if they "unlawfully glorify the commission or preparation of acts of terrorism".
Islam4UK spokesman Anjem Choudary told BBC Radio 4: "What the people will see is if you don't agree with the government and you want to expose their foreign policy, then freedom quickly dissipates and turns into dictatorship."
He denied Islam4UK members were involved in violence: "I challenge anyone to authentically prove that any of our members have been involved in any violent activities or promoting violent activities or asking anyone to carry out any sort of military operations.
"We are always at pains to stress that we are an ideological and political organisation.
'Whatever price necessary'
"We won't be using those names and those platforms which have been proscribed, but I can't stop being a Muslim, I can't stop propagating Islam, I can't stop praying, I can't stop calling for the Sharia.
"That's something I must do, and ultimately I will pay whatever price I need to for my belief."
Speaking from Lebanon, Omar Bakri Muhammad, founder of al-Muhajiroun, told the BBC the decision to ban the group would "increase the popularity of al-Muhajiroun" and "force them underground".
On Sunday Islam4UK cancelled the march, saying it had "successfully highlighted the plight of Muslims in Afghanistan".
The group denied members had planned to carry 500 empty coffins through the town.
The banning order will come into effect on Thursday and make it a criminal offence to be a member, punishable by up to 10 years in prison.
Shadow home secretary Chris Grayling welcomed the decision to ban Islam4UK.
He said: "We cannot permit any group which propagates the views of banned international preachers of hate and organises hate-filled public protests to operate in Britain.
"Now ministers need to look at how they are going to ban other groups in the UK which are part of broader international networks of extremism."
Earlier this week, Prime Minister Gordon Brown said plans for the march were "disgusting".
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You do have to wonder how and where some people find their cracy from
What does banning a group like this actually do beyond pushing it underground where you can't observe it, can't report on it, and can't let people see through the one sided, nonsense of it. Can someone please explain to me (you can use words of more than one syllabul, I really do understand them) how this is will be of benefit to anyone?
Or, do you think that this is a political play, a scheming manouver by the desperate, soon-to-be-out-on-their-arse-for-another-30-years Labour party to appear tough on Terror (bit late if you ask me) and supporting those members of the armed forces that would have been very pissed if this group had actually protested?
