Government officials have drawn up deeply controversial proposals to broaden the definition of extremism to include anyone who “undermines” the country’s institutions and its values, according to documents seen by the Observer.

The new definition, prepared by civil servants working for cabinet minister Michael Gove, is fiercely opposed by a cohort of officials who fear legitimate groups and individuals will be branded extremists.

The proposals have provoked a furious response from civil rights groups with some warning it risks “criminalising dissent”, and would significantly suppress freedom of expression.

One Whitehall official said: “The concern is that this is a crackdown on freedom of speech. The definition is too broad and will capture legitimate organisations and individuals.”

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Internal departmental documents marked “official – sensitive” says the proposed definition could “frame a new, unified response to extremism”. It lists a number of organisations which it considers would be “captured” by the new definition.

Among them are the Muslim Council of Britain (MCB), Palestine Action and Mend, which has featured at some Conservative party conference fringe events and in 2021 provided evidence to parliamentary committees.