Racial tension will rise as the economic downturn pulls people into sharp competition for jobs and resources, a leaked letter from the Home Secretary predicts.
The draft letter sites the need for low-paid migrant workers and lack of protection from cash-stretched police forces as ingredients for extremism and terrorist acts.
The document states, "There is a risk of a downturn increasing the appeal of far-right extremism and racism, which presents a threat as there is evidence that grievances based on experiencing racism are one of the factors that can lead to people becoming terrorists."
If things go the same as in the recession in the early 1990s, police will be stretched by increases in property crime, like buglary, and also violent crime.
Fuel scarcity could increase fuel smuggling and also mean that police are unable to cover their usual areas.
However, there may be reluctance from police authorities to give more cash as government tries not to pass on their own cost increases to a population frustrated by reduced lifestyles.
The institutionalised racism exposed by Lord Scarman in the 1980s has been addressed over many years but can not have been eradicated.
Tensions within the police force were shown in the employment tribunal where a top Asian police officer is accusing Metropolitan Police chief Sir Ian Black of racial and religious discrimination.
Assistant Commissioner Tarique Ghaffur says he wrote a report into why a man was stopped 37 times and charged 17 times but never convicted. Mr Ghaffur concluded that the man was a victim of harassment.
After being asked by Sir Ian to withdraw the findings and refusing to do so, the report was rewritten by a third party and he was not permitted any further involvement in the case, Mr Ghaffur states.
The employment tribunal is expected to begin next year when these Home Office predictions will be fermenting.
