Credit crunch will fuel crime in UK

British Home Secretary warns the global credit crunch will likely fuel a surge in crime, racism, smuggling and even terrorism in Britain.

According to Jacque Smith, the economic meltdown could see Britons turning on immigrants as they struggle to make ends meet.

The chaos is predicted in a secret letter from Smith to Prime Minister Gordon Brown, the Daily Star reported. The leaked document also reveals there will be fewer police to deal with crime rise on Britain's streets.

The Home Office was asked to assess the impact of the credit crunch and the letter was ready to be signed off before it was sent to the Downing Street.

The leak is another slap in the face for Brown, who has been telling people not to panic as he struggles to repair the fast crumbling economy.

It also warns of a rise in muggings and burglaries. This could lead to foreigners being separated from communities and encourage terrorist groups to recruit them.

Knife-crime is also getting out of control among teenagers in recent times.

On August 18, England footballers David Beckham, Rio Ferdinand and David James joined the fight against knife crime on Britain's streets. The trio helped to launch a new government's anti-knife crime campaign called “It Doesn't Have to Happen”.