A Downing Street strategy unit report has warned ministers to prepare for a crime wave if the country's economy takes a turn for the worst.
The report, leaked to the Sunday Times, says the UK will face its first increase in crime levels since the mid-1990s with a prediction that prison numbers will be boosted by 25 per cent to 100,000 within five years.
It blames the crime wave on an increasing "wealth gap" in British society.
Entitled Police Review: Crime Justice and Cohesion, the report also criticises the police for its failure to tackle crime, claiming that nine out of ten crimes either go unreported or unpunished.
"There is still little chance that a crime will be detected and result in a caution or conviction," the report is quoted as saying.
It claimed the freezing of the Home Office budget will also contribute to the crime level rise, with spending on crime reduction strategies not rising in line with the threat being faced by an economic downturn.
It recommends a number of plans to help combat the crime wave including heroin vaccinations, alcohol rationing, chemical castration, parenting classes and ID chip implants.
But Downing Street has warned that the report is only a set of ideas, not a plan of action, with a spokesman saying: "This document does not represent government policy.
"It sets out lots of ideas for discussion and consultation, including looking at measures used in other countries. The policy review process is still at an early stage and people should wait for the end of that process."