Ministers are on a collision course with civil liberties groups after it emerged they were to consider plans for a national database.

Details of every phone call and email sent in the UK would be held. The plans, which are at a very early stage, are being considered for inclusion in the draft Communications Bill to be published later this year, the Home Office confirmed.

However, they are likely to provoke outrage from data protection and civil liberty campaigners and raise objections to the rise of a "Big Brother" state.

Liberal Democrat home affairs spokesman Chris Huhne led the criticism saying: "This is an Orwellian step too far. Ministers have taken leave of their senses if they think that this proposal is compatible with a free country and a free people."

He added: "Given the appalling track record of data loss, this state is simply not to be trusted with such private information."

Meanwhile, it has emerged confidential health records of 38,650 patients on the Isle of Wight have gone missing after a computer back-up tape was lost by a courier firm.

Sandown Health Centre sent its computer records to a specialist company to carry out checks on its software but the tape failed to arrive back when sent by courier firm City Link.

A Home Office spokesman said retaining communications information is essential for protecting national security. He also emphasised powers to hold information were subject to strict safeguards.

He said: "Communications data - the who, how, when and where of a communication but not the what (content) of the communication - is a crucial tool for protecting national security, preventing and detecting crime and protecting the public.

"The Communications Data Bill will help ensure that crucial capabilities in the use of communications data for counter-terrorism and investigation of crime continue to be available.

"These powers will continue to be subject to strict safeguards to ensure the right balance between privacy and protecting the public.

"We need to make changes to the Regulation of Investigatory Powers Act 2000 (RIPA) to ensure that public authorities can continue to obtain and have access to communications data essential for counter-terrorism and investigation of crime purposes.

"We will also use this legislation to transpose into UK law the EU Directive 2006/24/EC on the retention of communications data - which requires the retention of internet protocol traffic data by communications service providers."

The Government has been embarrassed by a string of data protection failures in recent months including the loss of a CD carrying the personal details of every child benefit claimant.

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