Pro-Palestinian campaign group Palestine Action's co-founder on Friday lost a bid to pause the British government's decision to ban the group under anti-terrorism laws, with the group losing an urgent appeal meaning it will be banned from midnight.

Palestine Action will head to the Court of Appeal hours before a ban against it is due to come into force, to challenge a High Court judge’s refusal to temporarily block it from being designated as a terror group.

The government moved to ban Palestine Action under anti-terrorism laws last month after its activists broke into a Royal Air Force base and damaged two planes in protest against what the group said was Britain's support for Israel.