Government departments, local councils and quangos are to be given the power to demand the communication records of every British telephone and internet user, it has emerged.

A draft order which will be debated by MPs next Tuesday has revealed that the government wants to expand the list of organisations which are permitted to scrutinise communications records.

Until now, the list had included only the police, intelligence services, customs and the Inland Revenue.

The Home Office claims that the powers, which will come into effect in August if approved by MPs, are necessary to fight terrorism.