David Blunkett has warned that fears about terrorism and asylum could lead to vigilante action on Britain's streets.

In an interview with the New Statesman, the home secretary said: "I am deeply worried because genuine fears and concerns can so easily turn to a desire to find scapegoats...I am worried about people taking the law into their own hands."

Habib Rahman, the chief executive of the Joint Council for the Welfare of Immigrants, said: "This is loose talk - and dangerous talk...If there is a danger of vigilantism, it is his responsibility to ensure that the law is not broken."

However, Dominic Grieve, the Conservative home affairs spokesman, said: "It is quite clear that terrorists are using asylum policy - or lack of it - as a means of getting into this country and establishing themselves. That is a serious and immediate issue that needs to be addressed on a security level."

Today's Mail reports that Iain Duncan Smith and Oliver Letwin are split on how to challenge the government on the asylum issue.