"His fascist views are not welcome in our country where we pride ourselves as a multi-faith society," he said.
"This is not about freedom of speech but about stopping the incitement to religious hatred this man promotes."
Earlier, the Muslim Council of Britain said Mr Wilders was "an open and relentless preacher of hate".
The home secretary has the power to stop people entering the UK if she believes there is a threat to national security, public order or the safety of UK citizens, but she cannot exclude people simply because of their views.
Foreign Secretary David Miliband said the home secretary made a decision on an individual case.
"We have profound commitment to freedom of speech but there is no freedom to cry 'fire' in a crowded theatre and there is no freedom to stir up hate, religious and racial hatred, according to the laws of the land," he added.
Lib Dem home affairs spokesman Chris Huhne said even with freedom of speech, there was a line to be drawn.
The Dutch government said it "regretted" the decision to bar Mr Wilders from the UK, saying it believed all its MPs "should be able to travel freely in the European Union".
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