Bali bombing: The aftermath

The government's system of terror threat warnings has been revamped following the Bali bomb.

Responding to a report by the intelligence and security committee, ministers revealed that the security service has reworked its procedures to ensure it gives "greater definition" of the actual threat.

MPs and peers on the committee had warned that the level of threat should have been changed to high risk, particularly after a failed grenade attack on an American diplomatic residence on September 23.

The government said: "The security service's threat assessment system was already under examination before the Bali bombings.

"The government notes the committee's recommendations that the system needed modification.

"As a result of the security service review, threat level definitions have been reworked to give greater definition between levels."

Ministers warned, however, that the alert system must not be allowed to spark unnecessary alarm.

"It is important to maintain a coherent and graduated response to the threat, and avoid devaluing the system of assessments, leading potentially to paralysis and the disruption of normal life in ways which benefit only the terrorist," they said in their response.

A new terrorism analysis centre will also be established to combat the growing threat of attack at home and abroad.

"With the increasing volume of intelligence, and the need to ensure that the Agencies and customer departments work together to best effect to counter terrorism, the existing structures are being further developed," said the government.

Ministers say the anti-terror strategy is being "fully co-ordinated across Whitehall".

"Experts from agencies and departments will be located in an expanded single joint terrorism analysis centre which will have full access to all the relevant material," added the government response.

Ministers have conceded that Foreign Office travel advice did not accurately reflect the threat of terrorism ahead of the devastating Bali bomb attack.

The government also admitted that Foreign Office travel advice required "more clarity and consistency".

"Some are being substantially rewritten, and restructured. The aim is to ensure that the summaries are short and precise, and that there is a specific terrorism paragraph where the situation in a country requires it," added the document.