The problem with muslims...

[DaveD]

There may be a few schools, mosques, clubs, etc. which preach an 'extreme' form of Islam, and while most Muslims do not agree with this small minority, it seems as if their views are spreading further and further and affecting the country more negatively. But, what can you do now? Ban all the faith schools and mosques in the UK?

Ban faith schools, yes, but not mosques.
I agree with much of the rest of your post though. The racism, though it rears its ugly head from time to time, is nothing like as bad as it was in the '70s, but in those days it got so bad that minorities became isolated. This continues today as a kind of cultural memory.