Fostering a sense of national citizenship is key to rebuilding shattered communities where different races live "parallel lives", John Denham said today.

The Home Office minister called for urgent action on local government policies and programmes to ensure they promote and encourage community cohesion.

The call follows last year's race riots in northern towns and a heated row over calls for an oath of allegiance for immigrants.

Denham stressed the importance of the debate on citizenship and said it was key to helping build stable communities.

"We need to build a society where we truly value diversity, where there is real equality and where everyone understands their rights and responsibilities," he told the Local Government Association.

Last December's report by Nottingham council chief, Ted Cantle, concluded that it was "essential to agree some common elements of nationhood" in Britain's divided inner cities.

"A meaningful 'concept of citizenship' needs establishing and championing which recognises the contribution of all cultures to this nation's development throughout its history, but establishes a clear, primary loyalty to this nation," said the report.

Denham acknowledged that disagreement existed over the fundamentals of British identity.

But he said the country had shown "an unambiguous rejection of racism and racial and religious hatred".

"One thing is clear, a debate about modern citizenship is vital," he said.

"Not everyone will agree exactly with how I have defined these issues, but I do think it is important to define the terms in which the debate takes place."

"Without that open and inclusive debate tensions can result which extremists are all too ready to exploit - we all want to avoid that. That is why debate and communication at all levels is vital."

The minister said the government has set up a community cohesion panel to ensure that local authorities deliver on "commitment to tackle poverty and deprivation".

"While I acknowledge that progress has been made in some parts of the country, a lot more remains to be done," said Denham.

"I believe that all local authorities need to urgently address the issue of community cohesion, including an assessment of their policies and any changes necessary to help build effective community cohesion."