The Home Secretary has acknowledged that Hezbollah “have themselves cast doubt on the distinction between [their] military and political activities”, in the clearest signal yet that the government will ban the political wing of the terror group.

Sajid Javid was responding to a question on Tuesday from Bob Blackman, the MP from Harrow East, who asked: “When will my right honourable friend proscribe both Hamas and Hezbollah so that we can take action to prevent these terrorist groups displaying these flags on our streets?”

The Tory MP referred to the annual Al Quds March, where the failure to ban Hezbollah's political wing, only its military one, makes it legal for demonstrators to fly its flag.

Mr Blackman said police were "once left again powerless to take action against people displaying flags of Hezbollah and Hamas, on the grounds that they were ‘the political wings of these illegal terrorist organisations".

The Home Secretary responded: “It is clear that Hezbollah has engaged in and promoted terrorist activity around the world.

"That is why we have already proscribed its military wing, but I am aware that ​Hezbollah leaders have themselves cast doubt on the distinction between the military and political activities, so I do understand why my honourable friend asks that question.”

However, he added: “It is not Government policy to comment on proscription without coming properly to the House, but I can assure him that we are keeping this under review.”

Politicians from both main parties have urged the Home Secretary to proscribe Hezbollah in its entirety, as called for by Mayor of London Sadiq Khan, Labour MP Joan Ryan, and Conservative MPs including Stephen Crabb and Phillip Hollobone.

Speaking in a Westminster Hall debate on the subject in June, Ms Ryan said she was "appalled that the government should once again have allowed this Iranian-inspired hate fest to take place on the streets of London", a reference to Al Quds Day.

She added: "I fail to understand why the Home Office has not heeded the repeated warnings raised by MPs and the Mayor of London over the past year."

Mr Hollobone described how “very distinguished international bodies have banned Hezbollah outright, they’ve proscribed it as a terrorist organisation… frankly I think we should join them.

He said: “Hezbollah is an Iranian creation that sits as the crown jewel in Iran’s regional strategy of Jihadi revolutionary warfare. It is in short the most powerful armed non-state actor in the world.

"This is an organisation which potentially is more lethal than Isis, and it is all backed and funded by Iran.”