New measures to combat the threat of terrorism are to be announced by Home Secretary David Blunkett and Chancellor Gordon Brown.
Government plans to change the law to deter and disrupt the work of terrorists in Britain.
Ministers are to outline the new anti-terrorism Bill to the House of Commons. The measure will stop suspected or convicted terrorists from claiming asylum when they arrive in Britain. The offence of incitement to racial hatred and similar laws will be extended to cover incitement to religious hatred. Law enforcement agencies will be given new powers to demand passenger lists from ferry companies and airlines. It will become an offence for financial institutions not to report transactions which they know or suspect are involved in terrorist activity.