Anti-Muslim rhetoric and “endless ‘anti-terror’ laws” are in danger of creating a McCarthyite witch-hunt against Muslims, according to the signatories of a strongly worded public statement, who include several controversial figures.



The statement accuses the government of “criminalising” Islam and trying to silence “legitimate critique and dissent”, and decries what it describes as “the ongoing demonisation of Muslims in Britain [and] their values, as well as prominent scholars, speakers and organisations.”

Signatories of the statement include Moazzam Begg, director of outreach for Cage, the organisation that came under fire last week after it sought to explain the radicalisation of Isis killer Mohammed Emwazi. Members of Islamist organisation Hizb ut-Tahrir, which is banned in several countries including Germany, have also signed the statement.



It was revealed earlier this week that the Home Office is planning a “more assertive” stance against extremism, with measures including penalties on benefit claimants who do not learn English and making visa applicants commit themselves to “British values”.



The statement, seen by the Guardian, reads: “We reject the portrayal of Muslims and the Muslim community as a security threat. The latest act of parliament, the Counter-Terrorism and Security Act, threatens to create a ‘McCarthyite’ witch-hunt against Muslims, with nursery workers, schoolteachers and universities expected to look out for signs of increased Islamic practice as signs of ‘radicalisation’.”



The signatories state that the “Muslim issue” is being exploited for political capital in the runup to the general election.



“Exploiting public fears about security is as dishonourable as exploiting public fears about immigration,” the statement reads. “Both deflect attention from crises in the economy and health service, but are crude and divisive tactics, where the big parties inevitably try to outdo each other in their nastiness.”



Jahangir Mohammed, director of the Centre for Muslim Affairs, said the Counter-Terrorism and Security Act had made the entire Muslim community feel targeted. “Counter-terrorism policies are flawed and alienating,” he said. “This approach is not working and actually backfiring. The entire Muslim community is being blamed for the actions of a violent few and as a result Muslims in Britain feel marginalised.”



He added that the Act would legitimise public servants’ suspicions of Muslims and their beliefs and political views. “This goes against equality policies that state individuals should not be discriminated due to their political and religious beliefs,” he said. “It will serve to destroy good community relations that have been built over many years and will treat Muslims as a suspect community.”

Asked if he thought the statement could backfire, he added: “There are those who may want to look at it in a bad light, but in general Muslims are not worried about this: they are very angry and frustrated with the current climate and policies, which target the Muslim community, and want their voices heard.”



The list of signatories also include the high-profile Muslim converts Yvonne Ridley and Cherie Blair’s half-sister, Lauren Booth, as well as academic Dr Reza Pankhurst, who is a member of Hizb ut-Tahrir and spent four years in an Egyptian jail for trying to recruit others to the group’s cause in 2002.



Another signatory is Shakeel Begg, the imam of the Lewisham Islamic Centre, which was attended by the Woolwich killers, Michael Adebolajo and Michael Adebowale, in the months leading up to attack on Drummer Lee Rigby.



The statement goes on to criticise “the continued public targeting of Muslims through endless ‘anti-terror’ laws,” adding that there have been 10 such pieces of legislation since the year 2000. Such legislation gives “huge power to the state”, while fuelling “media hysteria”, it claims.



Facebook Twitter Pinterest Journalist Yvonne Ridley, who was captured by the Taliban and later converted to Islam, is another signatory to the statement. Photograph: Roger Askew/Rex Features

The group states that the use of words such as “radicalisation” and “extremism” prevents debate, adding that it is “unacceptable to label as ‘extremist’ numerous normative Islamic opinions on a variety of issues”.

Dilly Hussain, a spokesman for the group, said the list of 62 signatories included moderate Islamic thinkers alongside names he acknowledged were considered controversial. He pointed to the likes of Arzu Merali of the Islamic Human Rights Commission, and Musharraf Hussain, chief executive and chief imam of the Karimia Institute and a former adviser to the Quilliam Foundation.



Asked why the mainstream Muslim Council of Britain, which could not immediately be contacted for a statement, were not signatories, Hussain said that members of the MCB were signatories, but because the organisation itself represents 500 mosques with different opinions, that made it difficult for the MCB to sign such a statement.



Tauqir Ishaq, a senior spokesman for Muslim Action Forum (MAF), which organised a rally of thousands of British Muslims protesting against cartoons showing the prophet Muhammad, said Muslims were feeling frustrated and disillusioned.

“People are being asked to compromise their faith and many feel there is no alternative here. The current environment has contributed to issues like young people leaving to go to Syria,” he said.

Ishaq added that he had been working on deradicalising people for a number of years, but that the government’s counter-terrorism legislation and Prevent strategy had pushed extremism underground. “Raiding mosques and investigating charities is not the way to tackle extremism,” he said. “Every Muslim is being treated with suspicion and heavy-handed tactics are being used against them. Celebrities like Jimmy Savile and Gary Glitter do not represent all British celebrities: why then do a minority of individuals who do something wrong become a representation of the entire Islamic faith?”



The combative statement declares a “concern about peace and security for all”, but adds: “We, however, refuse to be lectured on peace-building and harmony by a government that plays divisive politics and uses fear to elicit uncertainty in the general public, whilst maintaining support for dictators across the Muslim world, who continue to brutalise and legitimate political opposition to their tyranny.”

Facebook Twitter Pinterest Lauren Booth, Cherie Blair’s half-sister, is also a signatory. Photograph: Sarah Lee/Guardian

The statement in full reads: