The idea of ringing a neighbourhood would be totally unacceptable

David Blunkett

Mr Blunkett said the strategy would engage with local people, rather than just concentrate on "bricks and mortar issues".

And he launched a broadside against the British National Party and neo-Nazi group Combat 18 - accusing them of "causing havoc" in the area.

The new home secretary, speaking to BBC News, played down the absence of any Asians in Thursday's talks.

Political balance

Dismissing "vicious and unwarranted" attacks on him and colleagues over the issue, Mr Blunkett said Oldham's deputy mayor Riaz Ahmed - whose house was attacked in the riots - had been invited.

But the council had decided not to send him to ensure the delegation was politically balanced.

Three-point plan

Local plan of action within 4 months Refocused funding Local forums to restore confidence

The deputy mayor was then invited, at Mr Blunkett's request, to attend as an observer.

But Mr Ahmed had decided this would create problems at local level.

It was more important to make real progress than engage in "gesture-ism", Mr Blunkett added.

Mr Riaz has already said he was more concerned with the outcome of the meeting than who went.

Rising tension

The talks follow rising racial tensions in the Greater Manchester town that culminated in riots last month.

The three-point plan will include a local action programme to be prepared in Oldham, within the next four months.

Michael Meacher: Lessons must be learned

Secondly, funding will be refocused borough-wide, to address perceived lack of fairness and ensure all communities benefit.

And thirdly, local forums - involving local police authorities, business leaders, and leaders of the white and Asian communities - would be established to rebuild confidence.

Mr Blunkett stressed that the aim was not Home Office intervention, but to support the town to find "solutions in their own community".

He was asked about the possibility of building walls between predominately white and Asian areas in Oldham.

The idea, promoted by far-right groups, comes amid media coverage of a metal fence erected in an alleyway, apparently aimed at blocking off an escape route for white vandals.

But Mr Blunkett said: "I'm not in favour of physical barriers per se.

"If there's a particular problem up an alley... they have from time to time been blocked off, but the idea of ringing a neighbourhood would be totally unacceptable.

"There will be no no-go areas."

'Dangerous situation'

He turned on those calling for the so-called 'peace walls', saying: "The BNP have caused havoc together with Combat 18.

"It is a very dangerous situation where there are genuine problems and people have grievances and others come in from outside to stir them up.

"So keeping the balance, a perception of commitment and support to particular elements of the community, is very important,"