Birmingham is to be a “priority area” in the fight against extremism, the Home Secretary has announced.

The city is one of 10 areas of the country where the Government will target grants designed to stamp out the extremist views which it believes can encourage terrorism.

A detailed report published by the Home Office warned that more terror suspects had been arrested in the West Midlands than anywhere else outside London.

Over the past 10 years, 12 per cent of people convicted of “Islamist terrorism-related offences”, one in eight, came from Birmingham.

Theresa May, the Home Secretary, said the Government would spend £46 million on challenging extremist views this year.

Much of the cash will be spent in London boroughs. The rest will be shared between nine towns and cities in the Midlands and North of England, including Birmingham and Stoke-on-Trent.

Ms May also revealed that some of the 40 universities identified as colleges with a “particular risk or radicalisation or recruitment on campus” had refused to co-operate with efforts to stamp out extremism.

The Home Office report said that officials “invited these universities to assess their ability to manage this risk. Not all of the institutions responded to the request.”

Last night the Government was refusing to name the universities involved.

The Government’s new strategy will involve more support for mainstream Muslims to make sure moderate voices are heard, and internet filters on computers in public places such as schools and libraries to ensure they cannot display material designed to promote extremism.

There will be more support for universities and colleges, including training for staff to help them spot when students become involved in extremist groups, and information on what they can do when they see extremism.

There will also be a focus on stopping prison inmates becoming radicalised while in jail.

Speaking in the House of Commons, Ms May told MPs: “Prevent is not about spying on communities, as some have alleged.

“It is about acting on information from the police, the security and intelligence agencies, local authorities and community organisations to help those specifically at risk of turning towards terrorism.

“It is incumbent on everyone in this country to play their part in helping them do so.”