Anyone who refused to give their name or explain what they were doing could be charged with obstructing the police and fined up to £5,000.

It is likely that police would need a "reasonable suspicion" in order to stop and question somebody. The new laws are set to form part of a package being put together by Home Secretary John Reid as he prepares to quit the cabinet next month.

But cabinet colleague Peter Hain, Secretary of State for Northern Ireland where the powers are already in force, warned the tough new anti-terror restrictions could become "the domestic equivalent of Guantanamo Bay". And newly re-elected Irish Prime Minister Bertie Ahern said it would be a shame if tackling al Qaida meant they were not relaxed as expected in Ulster.

A Home Office spokeswoman said: "We are considering a range of measures for the Bill and 'stop and question is one of them."

Counter-terrorism minister Tony McNulty told Prime Minister Tony Blair last week the new stop powers would be "very useful UK wide", the Sunday Times said. The paper quoted a letter sent to the PM which suggested it would help to reduce the use of existing stop and search powers, which are unpopular with the public.

Civil rights campaigners and British Muslim groups also attacked the proposed new legislation. Liberty director Shami Chakrabarti said: "The police should not have powers to run around questioning people willy-nilly, otherwise people feel hunted. This looks like political machismo, a legacy moment. Stopping and questioning anyone you like will backfire because people will be being criminalised."

Inayat Bunglawala, spokesman for the Muslim Council of Britain, argued that the new powers would lead to young Muslim men being "disproportionately targeted".

The Home Office would not comment on suggestions the new laws were to be rushed through before Mr Blair steps down as Prime Minister on June 27.

Mr Reid has said he will quit the cabinet at the same time.