London, Feb.15 : The Royal United Services Institute (RUSI), a body of the country's leading military and diplomatic figures, has claimed that Britain is experiencing a loss of values and national identity, and has blamed this malaise on "flabby and bogus" Government thinking.
Warning that because of such thought processes, the country is vulnerable to attack from Islamic extremists, the RUSI report said ministers have failed to tackle immigrant communities that refuse to integrate, and this had led to the existence of home grown terrorists.
According to a Telegraph report, MI5 estimates that there are currently about 2,000 active terror supporters in Britain
The stark warning - which comes just days after the Archbishop of Canterbury was plunged into a row over the adoption of sharia, or Islamic law, in Britain - will embarrass the Government.
RUSI, whose patron is the Queen, is one of the most respected and long-established defence research organisations in the world.
Gordon Brown, who is due to unveil his national security policy next week, has described the think-tank as "leading the debate about homeland security and global terrorism".
Its analysis represents the views of senior defence experts including Lord Inge, the former chief of the defence staff, Vice Admiral Sir Jeremy Blackham, General Sir Rupert Smith and Baroness Park, a former senior officer with MI6.
The Marquess of Salisbury and Professor Gwyn Prins of the London School of Economics wrote it.
The report also warned of other factors leading to this muddled thinking on multiculturalism.
The military is not receiving adequate funding and the Armed Forces are in a state of "chronic disrepair".
Competition for energy, water and food from China and India raises significant questions for security policy.
British reliance on a weakening UN, NATO and EU could leave this country vulnerable to emerging terrorist threats.
"The UK presents itself as a target, as a fragmenting, post-Christian society," the report says, and is "increasingly divided" on its history, national aims, values and political identity," it said.