The home secretary has accused universities of not doing enough to tackle extremism The government is to publish an updated strategy for tackling extremism and terrorism, on Tuesday afternoon.
The Times newspaper says a review identified serious failings with the existing policy – known as Prevent – set up four years ago.
Home Secretary Theresa May is expected to say some of the £63m annual budget was wasted on overseas projects which have produced no security benefits.
Spending more on countering radicalism in prisons is due to be recommended.
Other recommendations expected include monitoring people convicted of terrorism offences on their release and a renewed focus on the use of the internet, as the government considers a “national blocking list” of violent and unlawful websites.
Prevent was originally launched after the 7 July bombings in 2005 to stop the growth of home-grown terrorism.
A final draft of the new document, to be published in Parliament on Tuesday, was reportedly seen by the Times.
It says it was “possible” Prevent funding had gone to extremist groups promoting hardline beliefs.
But the new document is expected to say the government will ensure that no more cash will be given “to organisations that hold extremist views or support terrorist-related activity of any kind”.
Previously, Mrs May has said that, as a result of the strategy’s review of government support, about 20 of the organisations that received funding over the past three years would have their cash withdrawn.
According to the Times, one reason for the failings of the current policy was a lack of scrutiny of the programme to test whether money was going to legitimate groups and bringing benefits.
“What we’re moving to is now getting into policing people’s thoughts and ideas”
Azad Ali Chairman of the Muslim Safety Forum
On Monday, Mrs May accused universities of complacency in tackling Islamist extremism – a charge denied by the vice chancellors’ body, Universities UK.
She told the Daily Telegraph: “I don’t think they have been sufficiently willing to recognise what can be happening on their campuses and the radicalisation that can take place. I think there is more that universities can do.”
In February, Prime Minister David Cameron said organisations seeking to present themselves as a gateway to the Muslim community were showered with public money despite doing little to combat extremism.
Baroness Neville-Jones, until recently a security minister at the Home Office, said the plan now was to encourage people to integrate and build a single society based on values like democracy and equality.
But Azad Ali, chairman of the Muslim Safety Forum and an advisor to the previous government on extremism, said the government should not attack ideologies.
“Everyone’s happy to help, including the Muslim community, in catching criminals who want to perpetrate crimes,” he said.
“But what we’re moving to is now getting into policing people’s thoughts and ideas. What is extremism? We’re talking to the Muslim community in particular – let’s be honest about it – through the prism of security. Why?”
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