BIG BROTHER ON THE CHEAP; Minister wants private firms to track our emails.

Byline: JASON BEATTIE

JACQUI Smith yesterday ditched plans for a Big Brotherstyle database of internet and email activity.

But the Home Secretary still wants private firms to keep records of ALL communications - in case they are needed by police or security services.

The move provoked fury from campaigners who believe the cheaper new plan is an equally shameless invasion of privacy.

Guy Herbert, of NO2ID, blasted: "It's a proposal for powers more intrusive than any police state in history.

"Officials could know what you read online and who all your friends are, who you emailed, when and where you were when you did so - all without a warrant."

Lib Dem home affairs spokesman Chris Huhne added: "What if a leading business person is ringing Alcoholics Anonymous or a politician's partner arranging to hire a porn video? [referring to Ms Smith's recent expenses problem] There has to be a careful balance between investigative powers and the right to privacy."

The Government had planned a single database to hold every email, phone call and communication.

But Ms Smith dropped the scheme amid claims it may have cost as much as pounds 12billion.

Under the revised plans, every internet user will be given a unique ID code and their data stored in one place. It is estimated this will cost pounds 2billion to set up.

Police and security services will be able to access it to investigate suspected criminals and terrorists. Town halls and Government agencies will also be able to see material. Ms Smith said it was vital that police fighting terrorism and organised crime get access to the data She said: "My key priority is to protect the citizens of the UK.

"Communications data is an essential tool to track murderers and paedophiles, save lives and tackle crime. It is essential police and crime-fighting agencies have the tools they need to do their job.

"We recognise that there is a delicate balance between privacy and security, but to do nothing is not an option as we would be failing in our duty to protect the public."

Shami Chakrabarti, of Liberty, said: "The Home Office has been sending out conflicting signals on the 'superdatabase' for some months.

"If this statement from the Home Secretary marks a genuine change of direction on privacy policy, we will welcome it. But it might be wise to read the small print first."