Home Secretary David Blunkett today unveiled plans to jail extremists who stir up religious hatred.

The measures come amid concern about attacks on members of the UK's Muslim community following the suicide attacks on the US.

But they will also help the Government to target Islam fundamentalists in this country.

Mr Blunkett told the Labour Party Conference he would introduce the new measures by extending the existing laws on incitement to cover religious, as well as racial, hatred.

He said: "I am determined to protect our country and its democratic values from those who seek to undermine and attack them.

"I am equally determined to ensure that religion is not used to divide and fragment communities in our country in this difficult time.

"That is why I will toughen up our incitement laws to ensure attention-seekers and extremists cannot abuse our rights of free speech and stir up tensions in our cities and towns."

Mr Blunkett also announced an overhaul of the work permit system as part of his continuing drive against illegal immigration.

He wants to introduce a system similar to the American green card scheme, with four key changes introduced.

The first would be the introduction, in January next year, of a highly skilled migrant's permit, which would allow people with significant professional qualifications to enter the country without a job in order to seek work, providing they have the means to support themselves.

Overseas students who graduate in the UK will also be able to apply for a work permit without leaving the country.

Discussions are planned with employers and unions about the potential for a system of quota-based permits for those parts of the economy handicapped by severe labour shortages.

Finally, there would be temporary permits for seasonal workers.

He said the measures would aim to tackle illegal immigration while ensuring the economy benefited from opening up opportunities for foreign workers.

Mr Blunkett's speech also paid tribute to the people of New York for their compassion and commitment to democracy in the wake of the September 11, attacks.

He said Britain and the US must work together to protect these shared values.

Mr Blunkett added: "We must protect the most fundamental value of all - the right to life".