Home Office in revolt at Smith's plan for 'Big Brother' database

Senior Home Office officials have expressed concern about the Government's controversial plans to set up a new "Big Brother" national database, according to a leaked memo.

The doubts among Home Office advisers put them at odds with the Government Communications Headquarters (GCHQ) eavesdropping centre in Cheltenham, which is pressing for records of all telephone calls, emails and internet visits to be retained to help combat terrorism.

The dispute between the two agencies may have to be resolved by Gordon Brown and the Home Secretary, Jacqui Smith. She insists that no decision has been taken on a giant new database, one of several options under consideration by the Government.

The Independent disclosed last week that the idea of a central database is being strongly opposed by Lord Carlile of Berriew QC, the independent reviewer of terrorist laws.

Yesterday, a memo leaked to The Sunday Times said that a "significant body of Home Office officials dealing with serious and organised crime" are lobbying against the proposal. They believe it is "impractical, disproportionate, politically unattractive and possibly unlawful from a human rights perspective," it said.

The paper also reported that everyone buying a mobile phone might have to produce a passport at the point of sale and register their identity. More than half of the UK's 72 million mobile phones are "pay as you go"; they are used by terrorists and criminals so they can remain anonymous. The proposed database would have limited value to the security services if these pre-paid phones were not included.

Ministers insist there are no plans to store the content of phone calls, text messages or emails. The most draconian option under consideration would allow the police and intelligence agencies to keep records on who communicated with whom and when.

The Home Office said yesterday that it did "not recognise" the leaked memo. A spokesman said: "The communications revolution has been rapid in this country and because of changes in technology the way in which we collect communications data needs to change too.

"If it does not we will lose this vital capability that we currently have and that we all take for granted in fighting and solving crime. Of course there is a balance between privacy and our liberty, which is why we have said we will be consulting on this and seeking a political consensus. No decisions have been taken and we will be consulting in the New Year."

Ministers want to proceed cautiously with the Data Communications Bill, fearing a backlash from MPs and civil liberties campaigners worried about a creeping "surveillance society".

Last week, Ms Smith dropped plans to allow suspected terrorists to be detained for up to 42 days without charge after they suffered a crushing defeat in the House of Lords.

New doubts about the Government's ability to hold data safely were raised yesterday after figures showed that the Home Office and Ministry of Justice had lost or had stolen 3,492 security passes since 2001 – more than one a day.