Ministers urge national Britain day

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Communities Secretary Ruth Kelly and immigration minister Liam Byrne said financial incentives may also be necessary to step up what they call Britain's "citizenship revolution".

In a Fabian Society pamphlet, the pair said it was essential to promote a stronger sense of Britishness and the values that people hold in common.

Their suggestions included:

A national "Britain" day, developed in co-operation with local areas;

A new system of "earned citizenship" with a clearer points-based path for newcomers to earn the privileges of settling in Britain;

Incentives for active citizens, such as cash top-ups linked to the Child Trust Fund or reduced tuition fees;

Local "good neighbour contracts" for all newcomers, explaining the rights and responsibilities of living in the UK.

Ms Kelly and Mr Byrne said there was a "critical risk" that after 40 years of increasing diversity in Britain, communities start looking inward and questioning their identity.

"So instead of emphasising what they have in common with others, they stress the divisions and differences," they said.

"Our task in Britain, in the coming decade, is not to plan a separation."