Britain does not have a First Amendment but they do have a long tradition of free speech. It applies to British people though. They also in recent years have not tolerated incitement to racial hatred and similar speech.

Here is what the BBC reports about the Hate Radio guy:

" Considered to be engaging in unacceptable behaviour by seeking to provoke others to serious criminal acts and fostering hatred which might lead to inter-community violence.

His views on immigration, Islam, rape and autism have caused great offence in the US. "

So he falls into the category of undesirable folks that they don't want visiting Britain. I imagine they are particularly concerned that he would stir up hatred of immigrants and the Islamic minority which is a perennial problem.

I hope we never have to do something similar here; but, the Hate Radio guys and crazy preachers are stirring up a large, uneducated segment of the population towards ever greater ignorance and hate. Plain education isn't working as well as it should because families are avoiding it via home schooling and religious controlled schools. NPR by itself isn't enough, I don't know what we should do. Banning home schooling and taxing all religious institutions might help a lot.
Source(s):
http://news.bbc.co.uk/2/hi/uk_news/8033319.stm

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An answer, in two parts (since it's a two part question), with a coda.

First, regarding the action in and of itself. It certainly does seem to be politically motivated and rather ill-conceived. If Dr. Savage were on a list of, say, thousands of people spanning all nations and philosophies, then I think the Crown could more easily justify the decision. But as one of sixteen? Are they really trying to say that of the six billion people on earth, only fifteen others are as dangerous as he is? That's a pretty ridiculous assertion no matter what rubric is used.

Secondly, regarding Dr. Savage's behavior on Talk of the Nation. He certainly didn't do himself any favors. He continually referred to his First Amendment rights as if that actually meant something regarding the government of another sovereign nation. He wouldn't answer the question regarding whether another sovereign nation had the right to bar entry from whoever they so chose, and when pressed, finally responded with a weak, "I don't know." And at the barest hint of disagreement (At least, that's what I think it was), he resorted to baseless ad hominem attacks and threw a temper tantrum and stormed out of the program.

Actually, it seems attacking those posing the argument instead of attacking the merits of the argument instead seems to be his modus operandi given that he started off by using old, tired stereotypes to insult the people of the United Kingdom regarding their teeth and their food.

A small silver lining: such a ridiculous news story does have the potential to spark genuine debate on the intricacies of free speech and what does and does not constitute hate speech or incitement to violence. Of course, this discussion would be much better discussed among attorneys, cognitive scientists, and philosophers of language than it would be if it is discussed only among politicians and pundits.

Personally, I'd argue that with regard to incitement, it depends just as much, possibly more, on the delivery of the words rather than the words themselves. Imagine if all the things Michael Savage were saying were said, word for word, in Ben Stein's monotone. It seems rather far-fetched that a lynch mob would assemble in such a case. But take those same words telling people to be terrified of the Other and how their way of life is being threatened by the Not Us and imagine them being spoken in a rapid, frenetic, voice with a rising inflection and gradual crescendo climaxing in the words being nearly screamed out, then it's very easy to imagine someone acting on those feelings of fear that are being communicated.
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You may not agree with Michael Savage, he is entitled to speak his mind any where in the world. I feel certain his career will not be affected by this recent bump in the road.
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UK wanted to show the word, that it is secular!

So it tried hard to include few non-muslims in the banned list.

But look at these Michael Savage quotes, that helped UK:

"... I'll tell you what autism is. In 99 percent of the cases, it's a brat who hasn't been told to cut the act out. That's what autism is. What do you mean they scream and they're silent? They don't have a father around to tell them, 'Don't act like a moron. You'll get nowhere in life. Stop acting like a putz. Straighten up. Act like a man. Don't sit there crying and screaming, idiot.'"
* - The Savage Nation, July 16, 2008

You know, when I see a woman walking around with a burqa, I see a Nazi. That's what I see -- how do you like that? -- a hateful Nazi who would like to cut your throat and kill your children. Don't give me this crap that they're doing it out of a sacred ritual or rite. It's not required by the Quran that a woman walk around in a seventh-century drape. She's doing it to spit in your face. She's saying, "You white moron, you, I'm going to kill you if I can." That's how I see it!
July 2, 2007

God abhors a spiritual
vacuum. That is why he has permitted, in fact probably not only permitted, but in a way orchestrated the rise of radical Islam.

... It's becoming increasingly clear to me that God wants radical Islam on this planet at this time -- that it's not actually the scourge you think it is. What it is -- it's a counterpoint to the Romanization of the United States of America and the West. The collapse -- the spiritual collapse of the West, the death of the West in that regard, is being countered by the birth of fanatic religion, which is fundamentally a fanatic love of God, when you think about it.

... And God, who is the center of this monotheistic religion, has said, "Oh, you don't worship me anymore? Oh, you don't like me anymore? Oh, I don't exist anymore? Really? All right, I'm going to show you boys in Hollywood and you girls in New York City that I do exist. But since you're very hard-headed, stiff-necked people, and you don't really believe that I exist because you've gotten away with everything you've done all your life without any repercussions, I'm going to show you I exist in a way that you can't believe." Down came the World Trade Center towers. That was God speaking.
March 27, 2007
Source(s):
http://en.wikiquote.org/wiki/Michael_Savage

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