Civil rights activists have expressed their concern over plans to allow doctors to hand over patients' medical records to the government.

Alan Milburn is set to announce proposals next week that will enable confidential medical records to be given to Department of Health officials to help with research into diseases such as e-coli.

The health secretary will be given the new power under Section 60 of the health act which goes before Parliament next week.Any doctors that refused to comply with the order could face a fine of up to £5000, the Independent on Sunday claimed.

Officials at the Department of Health defended the move saying it would be only a "reserve power" used when no other option was available and that only people approved by the government would be able to access patient information.

The department would not allow access for inquiries linked to benefit investigations or police records and an independent group of advisors would ensure guidelines were adhered to.

Both civil rights campaigners and Opposition MPs reacted angrily to the plans.

John Wadham, director of Liberty, said: "This is another example of the absence of strong controls on our personal information.

"Unfortunately, we can't trust the government to look after data - there are too many examples where their definition of the public interest overrides our basic human rights."

Conservative health secretary Dr Liam Fox said doctors would be forced by the government to choose between breaking the law and respecting their patients.

"This is yet another illiberal measure brought forward by this government which will effectively end our rights to confidentiality," he said.

"Doctors will be put in the impossible position of choosing between breaking their ethics or breaking the law."