Home Secretary Yvette Cooper says she has decided to proscribe Palestine Action under anti-terror law.
The announcement came as the group held a protest in central London, with hundreds in attendance and at least two arrests made as scuffles broke out.
Activists from the group broke into RAF Brize Norton in Oxfordshire last week and spray-painted military planes red to protest against the UK’s support of Israel during the war in Gaza.
Cooper said it was a “disgraceful attack” and the group had a “long history of unacceptable criminal damage”.
She added: “This decision is specific to Palestine Action and does not affect lawful protest groups and other organisations campaigning on issues around Palestine or the Middle East.”
Proscribing the group effectively brands it a terrorist organisation.
Cooper will lay an order before Parliament next week, which if passed, will make membership and support for the group illegal.
Hundreds of people met at Trafalgar Square after police banned them from protesting outside of Parliament.
Organisers made the last-minute venue change after Scotland Yard enforced an exclusion zone across much of Westminster.
Metropolitan Police chief Sir Mark Rowley said while the force had no legal power to stop the protest, they would impose the conditions “robustly”.
Charing Cross, next to Trafalgar Square, was blocked for a time as the protesters gathered.
Some supporters of the group waved Palestinian flags and carried placards, with other protesters chanting: “We will not be silenced.”
Labour peer and activist Baroness and Shami Chakrabarti said ahead of Cooper’s statement that she did not advocate criminal activity in protest, she felt proscription was a “step too far.”
Chancellor Rachel Reeves condemned Palestine Action’s behaviour as “totally unacceptable” ahead of the statement in Parliament.
“To cause damage to military assets, but also to cause such damage to privately owned assets, it is unacceptable whatever your views are on what’s happening in the Middle East,” she said.
