Terrorists to be targeted overseas

Mrs May said it was highly likely British extremists "trained and hardened on the streets of Mogadishu" may try to return to commit mass murder in London.

She revealed an alleged member of al-Qaida in the Arabian Peninsula was arrested in Britain earlier this year and is accused of planning a terrorist attack in this country.

The Islamic terrorist group has been widely blamed for the printer bombs found on United States-bound cargo aircraft at East Midlands Airport and in Dubai last Friday.

Speaking at the Royal United Services Institute in Whitehall, Mrs May said the Government's review of its counter-terrorism strategy will include "significant changes" leading to a "much better balance".

She said: "Where necessary we will enhance our protective security measures; we will invest in conflict prevention and stopping terrorist plots overseas; we will refocus the strategy for preventing radicalisation in the UK; and we will strike a better balance between our liberties and our security.

"There is much good work under way to tackle the terrorist threat. But where there needs to be change I will not be afraid to make it."

"I want an approach which is more targeted against extremist individuals, but that impacts much less on the good people of our communities."