Recession could spark rise in crime and extremism

By Peter Griffiths

LONDON (Reuters) - The economic downturn may lead to a rise in crime, illegal workers and far-Right extremism that could drive more people towards terrorism, according to a leaked government document.

A draft letter from the Home Office to Downing Street warns that a recession could create the conditions likely to increase support for radical Islamist groups.

The downturn could also lead to more burglaries, alcohol and tobacco smuggling and hostility to immigrants as jobs become more scarce.

The warning comes after Chancellor Alistair Darling said the slump could be the worst for 60 years, increasing pressure on Prime Minister Gordon Brown, who is trailing the Conservatives in the polls.

The downturn has already seen house prices tumble, the pound fall against the dollar and economic growth grind to a halt for the first time since 1992.

The leaked letter, entitled "Responding to Economic Challenges", says "we should expect increased public hostility to migrants".

"There is also a risk of a downturn increasing the appeal of far-Right extremism and racism, which presents a threat as there is evidence that grievances based on experiencing racism are one of the factors that can lead to people becoming terrorists."

It also warns that "an economic downturn would place a significant upward pressure on acquisitive crime".