LONDON – Britain raised its terrorism threat level to "severe," the second-highest level, on Thursday after police declared a stabbing attack in London's Golders Green "a terrorist incident", Home Secretary Shabana Mahmood said.

"Today, the national threat level has increased to 'severe', which means a terrorist attack is considered highly likely," Mahmood said, adding that the move may cause concern, "particularly amongst our Jewish community, who have suffered so much."

The attack took place on Wednesday in the northwest London neighborhood of Golders Green, where a man armed with a knife attacked Jewish pedestrians. Counter-terrorism police later declared the incident a terrorist act.

Two victims, aged 76 and 34, sustained stab wounds and remain in hospital, according to Laurence Taylor, head of Counter Terrorism Policing at the Metropolitan Police.

Police said the suspect, a 45-year-old British man born in Somalia, has been arrested.

ALSO READ: Australia Bondi terror probe sees security gaps, backs gun curbs

British Prime Minister Keir Starmer said on Thursday authorities are "fast-tracking legislation to deal with malign state actors" and stressed the need to address "the root causes of both antisemitism and extremism."

In a later statement from Downing Street, Starmer said the government would increase investment in Jewish security services.