Tension over uncontrolled immigration is leading to a "cold war" between ethnic communities, according to the chairman of the Equality and Human Rights Commission.
Trevor Phillips used a speech to mark the 40th anniversary of Enoch Powell's "rivers of blood" speech" to call on the government to improve the immigration system.
He warned that ministers must address the concerns of the "settled" population or risk boosting support for parties such as the BNP.
"Powell predicted 'hot' conflict and violence," he said. "However, we have seen the emergence of a kind of cold war in some parts of the country, where very separate communities exist side by side... with poor communication across racial or religious lines.
"In essence, Powell so discredited any talk of planning or control that it gave rise to a migration policy in which government knew too little about what was going on.
"Ironically, Powellism and the weakening of control it engendered may have led Britain to admitting more immigrants rather than fewer."
Immigration minister Liam Byrne said: "I've said consistently that the British public is right to demand changes to Britain's immigration system.
"That is why 2008 sees the biggest changes for 45 years including a points system like the one in Australia, a single border force, compulsory ID cards for foreign nationals and the reintroduction for a system to count people in and out of Britain so we know precisely who is here."
Shadow home secretary David Davis said Phillips "raises a brave and timely warning and points out the consequences of a disastrous loss of immigration controls".
"It has had adverse consequences for public services, housing and community relations," he said.
"Whilst managed immigration is for the benefit of the country, uncontrolled immigration can lead to serious problems for the whole nation."
But a spokesman for the UK Border Agency said the introduction of ID cards for foreign nationals, would give Britain "one of the toughest borders in the world".
"The points based system will manage migration in the national interest and only let those migrants Britain needs come to the UK," she added.

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