Government policy part of the problem not the solution
It is not surprising that the Government were so upset by the linked BBC report of a British Intelligence officer saying that the UK action in Iraq causes terrorism. It was said before the Invasion that this would happen.
It is not that the UK should give in
to terrorism. It is, however, that certain types of actions cause massive resentment that can result in terrorism.
When looked at objectively over a number of years you would ask whether the UK and US are intentionally trying to create a global battle. The words used, the actions taken all lead to greater conflict.
It is a very simple point that you don't win hearts and minds at the point of a gun.