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It specifically called for a change in the way regeneration schemes are managed, as they force groups to "compete against each other" and lead to resentment.

It warned of the dangers of the government's policy of encouraging single-faith schools, which might deepen the divisions.

'Diverse community'

Home Secretary David Blunkett, who was speaking about race relations in Birmingham on Tuesday, welcomed the reports and called for a debate on citizenship.

All schools, whether faith or non-faith based, should seek to limit their intake from one culture or ethnicity

Cantle report

"Today's reports show that too many of our towns and cities lack any sense of civic identity or shared values.

"Young people, in particular, are alienated and disengaged from much of the society around them, including the leadership of their communities."

But Mr Blunkett defended the government's policy of encouraging more faith schools.

He said if some religions could have faith schools, it was unfair not to allow other communities their desire to follow suit.

Prime Minister Tony Blair's spokesman also welcomed the reports, saying they had "started a debate which we as a country need to have".

More research

He said it was important to "recognise and celebrate diversity at the same time as developing the bonds thatany community needs."

It said cross-governmental work on the myriad aspects of community cohesion, which had been established in the last few months, should continue.

It said it would press the local authorities concerned to publish their own plans for cohesion by April 2002.

And it suggested establishing a research programme to give a fuller understanding of segregation in the UK.

'Controversial debate'

Mr Denham said itwas crucial to identify "shared values and common citizenship" tohelp bind Britain's diverse ethnic communities.

"These issues are intrinsically difficult and controversial butwe must grapple with and debate them if we are to make progress,"he said.

He added: "We have not made a commitment to aformal oath of allegiance, but we do want the debate to take place."

The summer's disturbances were some of the worst seen in the UK, with the Bradford violence alone causing damage estimated at £10m, and injuring 300 police officers.

 ON THIS STORYThe BBC's Margaret Gilmore in Oldham
"The riots happened in the segregated areas"
Report author Ted Cantle
"A complete lack of contact between some communities"
UK Home Secretary David Blunkett
"We need to instil a sense of belonging"

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